Both the U.S. and global economies are set to be permanently altered by the coronavirus outbreak and the measures that have been taken in response to it, experts say.
The state of play: “Fundamentally there are going to be huge changes in household consumption patterns, business patterns and global supply chains,” Kevin Warsh, a former Fed governor and current economics lecturer at Stanford, said during a Reuters teleconference.
- “Recall how different the landscape was — not just for banks — in the last crisis. And this one seems to be having a bigger imprint on society.
What it means: Many of the changes to the world order that have been slowly creeping in will now be accelerated.
- Most importantly, there will likely be a retrenchment of globalization and international cooperation combined with further cementing of a winner-takes-all climate in which the biggest and most powerful companies and countries bowl over and eliminate smaller competitors.