A collapse in stock markets, co-ordinated policy statements, and emergency interest rate cuts: the events of the past week have inevitably led to comparisons to October 2008. But the differences are as significant as the similarities. Neil Shearing from Capital Economics takes a look at the possible consequences of the crisis. Key quotes “The shock posed by the coronavirus affects both the supply- and the demand-side of the economy. Factory shutdowns, travel bans, supply-chain disruptions, and school closures represent a supply shock – the ability of the economy to produce goods and services is diminished. But fewer trips to shops, restaurants, and cinemas represent a demand shock – consumer spending falls. Large falls in the stock market also feed into weaker demand by reducing household wealth.” “These effects can be self-reinforcing since factory shutdowns can reduce the income of workers, which in turn reduces spending”. “The outlook is unusually uncertain but our sense at this stage is that this is most likely to be a short, sharp shock.” “The most likely worst-case scenario today is a sharp but probably short recession rather than an outright depression.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Oil: Brent to consolidate losses – Commerzbank FX Street 3 years A collapse in stock markets, co-ordinated policy statements, and emergency interest rate cuts: the events of the past week have inevitably led to comparisons to October 2008. But the differences are as significant as the similarities. Neil Shearing from Capital Economics takes a look at the possible consequences of the crisis. Key quotes “The shock posed by the coronavirus affects both the supply- and the demand-side of the economy. Factory shutdowns, travel bans, supply-chain disruptions, and school closures represent a supply shock – the ability of the economy to produce goods and services is diminished. But fewer trips to shops,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.