“And you want to talk about a negative productivity shock, too. The biggest positive productivity shock we’ve had over the last 40 years has been globalization together with technology. And I think if you take away the globalization, you probably take away some of the technology. So that affects not just trade, but movements and people. And then there are the socio-political ramifications. I liken the incident we’re in to The Wizard of Oz, where Dorothy got sucked up in the tornado with her house, and it’s spinning around, and you don’t know where it will come down. That’s where our social, political, economic system is at the moment. There’s a lot of uncertainty, and it’s probably not in the pro-growth direction.”-Simon Kennedy, “Harvard’s Reinhart and Rogoff Say This Time Really Is Different.” Bloomberg. May 18, 2020.
Probably the best thing I’ve read on the financial implications of the coronavirus pandemic. If you have any interest in GDP, the economy, etc., this is worth reading in full.