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The economics of coronavirus differ from previous recession-inducing shocks, in the opinion of Steve Englander, a strategist at Standard Chartered Bank.

Key quotes

“The coronavirus shock is a temporary supply shock, even if the duration is unclear. (…) If the disease abates, business will largely (not fully) be able to restart, assuming the firms and employees are there.”

“A demand shock accompanies the supply shock. Households and businesses will cut back purchases.” 

“We think that part of the unavoidable cost of the downturn will have to be socialised so as to minimise the avoidable cost.”