Although it can be difficult to predict exactly how the next health crisis will impact us, there are valuable lessons to be learned from the current one. Lessons which should be brought to the table in future political discussions across the world. Because it is clear that politicians and other decision-makers now look at our preparedness and response systems […]
Crisis management in developing countries is more difficult than in advanced economies. Existing health infrastructure is usually deficient, the large share of the informal economy means a higher cost of the lockdown and subsequent social distancing on businesses, and food production and distribution are more easily disrupted because of border closures, threatening household living standards.
To make matters worse, established […]
Brexit and Covid-19 are typically considered distinct events. However, these events have one thing in common: they have significantly disrupted the supply chains of UK firms. Since the 1980s, many UK companies have set up centralised manufacturing facilities in low-wage economies where finished goods are assembled cheaply and shipped to higher income markets. Brexit and Covid-19 have delivered a […]
If the European Union is truly aiming at reconstruction, it would be better to quarrel less over the various forms of debt (be they the European Stability Mechanism or the Eurobonds) needed to increase liquidity, and instead think about investment plans.
More than half a century ago, Airbus started its business. The initiative came from the French and German governments, […]
Let me introduce you to a new concept, “supply chain immunity”. Immunity, not resilience. Resilience is often one of the first things to emerge in any debate on how we arrived at the point in which we are today in the Covid-19 pandemic, especially as it applies to supply chain management. Supply chain resilience generally means the ability to […]
As a consequence of the upcoming economic crisis triggered by the Covid-19 situation, US and European banks are expected to book more than $50bn of charges on bad loans in the first quarter of 2020. The accounting rules that dictate the way banks provision for loan losses are crucial because they directly affect the ability of banks to continue […]
Governments around the world are wondering how to expediently put money in the hands of the millions of firms struggling in the health crisis. Look no further: just pay your bills on time. If governments paid all receipts due to their contractors within 45 days, some $4.65 trillion in fresh liquidity would enter the private sector. To put this […]
On 5 May 2020, the German constitutional court ruled that the European Central Bank’s public sector purchase programme (PSPP), the main part of its quantitative easing, is overstepping the ECB’s competencies, in its current form. The effects of this decision on monetary policy will probably be minimal: the court decided that the decisions were not appropriately justified, so that […]
Globalisation, urbanisation and prosperity have been among the most notable trends of the post-war era. The world is becoming more connected, following technological advances which have made communication cheaper, faster and easier, as well as political advances which have created a fairly peaceful and democratic world order with close cooperation across national borders – nowhere more so than in […]
The number of Covid-19 deaths by country is widely used by governments and the media as a vital measure of the pandemic. A typical example is the slide below used for many weeks at the daily UK government briefings.
Figure 1. Global death comparison (UK government’s cabinet office briefing rooms chart)
Notes: Countries are aligned by stage of the outbreak. Day 0 […]