General World News

Why a coronavirus-driven recession would be a unique beast — and why the normal playbook might not work

A man wearing face mask and plastic bag as a glove walks past empty shelf of tissue papers at a supermarket in Hong Kong, Friday, Feb. 7, 2020. In recent days, residents have been buying large amounts of products because they fear that border restrictions, which were enforced to control the coronavirus outbreak, may affect supply flows into Hong Kong. (AP Photo/Kin Cheung)

  • The ongoing coronavirus outbreak could result in a dangerous and unique type of global economic recession.
  • The outbreak has already crippled spending activity in China and prompted widespread factory shutdowns, harming both supply and demand in the economic superpower — and infecting economic operations worldwide.
  • Central banks are normally well-positioned to boost demand through rate cuts. But the “supply shock” posed by coronavirus complicates matters considerably, according to Morgan Stanley.
  • Visit the Business Insider homepage for more stories.

The fallout from the ongoing coronavirus outbreak is driving new warnings of a full-fledged global recession. And economists fear the downturn won’t read more >>>

Source:: BusinessInsider.Com