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Macroeconomic Challenges and Risks Posed by the Global Coronavirus Crisis

Author

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  • Dimitar Ivanov

    (Gerken Capital Associates, USA)

Abstract

The article presents an analysis of the current global economic crisis caused by the coronavirus pandemic in 2020. The author’s objecttives were to define and discuss the characteristics of the current crisis and its external causes as well as the macroeconomic, financial, institutional and social imbalances in the period after the global financial crisis of 2008 that led to its outbreak. Using this analysis, the author is identifying some longer-term macroeconomic challenges and risks that would deepen and prolong the current crisis as on a global scale as well as in the economies of Europe and Bulgaria. The main thesis to which the author adheres is that although the contemporary crises that occurred in 1929, during the 70s, and in 2008 had typical common characteristics and provided us with valuable lessons to be learnt, each of those crises had its own character and features. Based on this thesis, the article draws attention to the essential critical problems of the global economy in addition to those caused by the coronavirus shock.

Suggested Citation

  • Dimitar Ivanov, 2020. "Macroeconomic Challenges and Risks Posed by the Global Coronavirus Crisis," Economic Archive, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 3 Year 20, pages 3-28.
    • Handle: RePEc:dat:earchi:y:2020:i:3:p:3-28
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    File URL: http://hdl.handle.net/10610/4360
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    References listed on IDEAS

    as
    1. Roger E A Farmer, 2020. "The importance of beliefs in shaping macroeconomic outcomes," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 36(3), pages 675-711.
    2. Bernanke, Ben S, 1995. "The Macroeconomics of the Great Depression: A Comparative Approach," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(1), pages 1-28, February.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Ivanka Vasenska & Preslav Dimitrov & Blagovesta Koyundzhiyska-Davidkova & Vladislav Krastev & Pavol Durana & Ioulia Poulaki, 2021. "Financial Transactions Using FINTECH during the Covid-19 Crisis in Bulgaria," Risks, MDPI, vol. 9(3), pages 1-28, March.

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    More about this item

    Keywords

    economic crisis; macroeconomics; macroeconomic policies and challenges; sovereign debt; Euro Area; European Union; IMF; globalisation; Bulgaria;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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