3. COMPARE the economic impact of corona pandemic with the GREAT ECONOMIC
DEPRESSION of 1929.
Answers
Comparing the Covid19 Crisis to the 1929 Depression
The Covid-19 Pandemic, which is now also being referred to as “The Great Recession” by economists and finance professionals worldwide is often compared to past recessionary periods in order to gauge the extent to damage it can leave in its path.
Needless to say, the Covid-19 Pandemic has led to a global consensus regarding an impending global recession. As per IMF's World Economic Outlook Report for June, the global economy is expected to shrink by -4.9% in FY 2020-21 and then bounce back in FY22.With a consensus regarding the impending global recession, the only dispute that remains amidst economists worldwide is the shape of the recovery curve - Whether the recovery curve will be U-shaped, V-shaped or L-shaped.
One of these comparisons goes back to “The Great Depression of 1929”, a rare comparison when talking about any recessionary period. We shall discuss here the 2 events independently and the basis for comparison between them to give you a better understanding of why this comparison is being drawn so widely.
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