The 2008 financial crisis will be seen as a dry run for Covid-19 cataclysm | Kenneth Rogoff
Short-term collapse in global output likely to rival or exceed any recession of the last 150 years
With each passing day, the 2008 global financial crisis increasingly looks like a mere dry run for today’s economic catastrophe. The short-term collapse in global output now under way already seems likely to rival or exceed that of any recession in the last 150 years.
Even with all-out efforts by central banks and fiscal authorities to soften the blow, asset markets in advanced economies have cratered and capital has been pouring out of emerging markets at a breathtaking pace. A deep economic slump and financial crisis are unavoidable. The key questions now are how bad the recession will be and how long it will last.