The global pandemic has caused tremendous damage to economic and public health across the world. With the vaccine rollout, there are strong expectations for a V-shape recovery in the US economy this and next year. Which of the following statements is inconsistent with the observations/experiences so far?
The global pandemic has caused tremendous damage to economic and public health across the
world. With the vaccine rollout, there are strong expectations for a V-shape recovery in the US
economy this and next year. Which of the following statements is inconsistent with the
observations/experiences so far?
a. From a historical perspective, the pandemic-induced recession is a highly unusual event for the
economy and markets. Pandemic is not normally a thing that drives the business cycles.
b. Even during the height of pandemic, the L-shape looked unlikely for a number of reasons,
including rapid large-scale policy response, political willingness, and favorable financial
conditions (such as low interest rate and US$ assets as safe assets).
c. Looking beyond 2021, debt overhang (both public and private) is one of the downside risks to the
global economic outlook.
d. None of the above are inconsistent with the observations/experiences so far.
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