The Covid-19 crisis has thrown up a sequence of images from the past (pandemics, wars, the Great Financial Crisis) that have pushed central banks (CB) and governments to act in unprecedented ways (in terms of magnitude and speed of action). This has defined the current ‘day after’ narrative.
Financial markets have adapted to this new narrative, pricing in the rosiest scenario of a ‘day-after renaissance’, but more will be needed in terms of fiscal and monetary support to sustain the recovery moving forward. The Covid-19 fallout on the real economy and society is deep and pervasive: the overall debt level in the system is skyrocketing and some sectors are very unlikely to recover to pre-crisis levels. Rising social and inter-generation inequalities are the enemy to fight to avoid social upheaval.
Read the complete whitepaper now at the link below