Dr. Nassir Ul Haq Wani
Volume 3 Issue 3 | Sep 2020
DOI: 10.31841/KJEMS.2021.29
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Introduction
The global economy will not return to pre-pandemic levels for another 2 years. Developed economies shrank an unprecedented 9.8 per cent from April to August this year. Compared to the worst quarter of 2008-09 financial crises, the economies shrank only by 2.3 per cent. So what should the policy makers and leaders do in this uncertain time to revive and revitalize the economies. There are technically three ways as savior channels;
Keep supporting people for as long as possible: As per the Angel Gurria, Secretary General OECD, that during 2008-09 financial crises, the financial stimulus was withdrawn too quick and fast and, jump into austerity was also fast, resulting into two further downturns of the world economy after that as we were too fast. We shouldn’t repeat that fallacy again. Lives against livelihoods is a totally false dilemma. What we should do is of course to throw everything what we have at our disposal including the kitchen sink, at the virus. Beat the virus, control the virus which is what is not happening now. And, of course that has a cost, but the cost of not doing that is much greater.