Economic Effects of Pandemics Last Decades, Research Shows
INTERNATIONAL – The coronavirus pandemic could harm the economy for decades if past patterns are a guide, according to researchers drawing on data going back to the fourteenth century.
Looking at 12 major pandemics as well as armed conflicts, economists Oscar Jorda, Sanjay Singh and Alan Taylor at the University of California, Davis, concluded that they depress real rates, lead to small increases in real wages, and weigh on investment.
Real wages end up being slightly elevated due to labor scarcity, they said, and lower real rates will allow fiscal space for governments to mitigate the consequences.
Source: iol.co.za
