[This article has been published in BESC website. ]
Coronavirus- Disrupting the game of economics!
How well the game could be played if all participants can't participate actively? Considering global participants who earn rewards (points in form of money), how wisely could the scattered game of economics be restarted? Coronavirus has spoilt the global economic game. All participants have united to get rid of this major crasher!
This virus won't reverse the exchange rate in favour of one country. It's not that- the country with lower number of cases would face currency appreciation. This virus has disrupted the global demand and supply chains. The virus seems to promote the concept of self reliance at both micro and macro levels. At micro levels, the ones who depended on outside food have started cooking their own. Now, all work is self completed! At macro level, 'produce in own country' concept faces boost (Like raw materials, that came from foreign country). Anything from outside seems risky!
The disrupter of economy is promoter of essentials! Market for goods with inelastic demand like food is surviving while that with elastic demand faces a sharp contraction. This contraction outweighs the prior one. The boom in the market for new essentials like masks and sanitizers is temporary. This temporary boom can't bring economy out of its gloom. It could just ensure safety of citizens who could later work towards making economy bloom.
In coming quarters, GDP will definitely be low. But, should we be worried if it is due to fall in demand for non-essential items? Like rise in sale of masks lead to fall in sale of lipsticks. (Also, should we be worried if nature breathes? )
It is worrisome as all non essentials are not as non essential as lipstick. If industries remain shut, people don't work, economy halts! The incentive of money runs the global economy. No one voluntarily provides services. They need something so they trade off something. What matters is health and well-being of people. For that, economy has to be boosted. The field of science and technology is playing a major role. To boost life saviour fields, economy needs a boost. The major boost comes from non-essential items!
As earning stops, daily spending continues, household wealth declines, nation's deficit widens! Economy could be boosted when the clasher of economy faces a clash. When virus gets destroyed, global economy will restart. When the economy will witness a fresh, greener, beginning from a new initial point, Money- 'The Incentivizer of Production' shall show its magic too! It depends how well the nations' utilize it to make 'value added' bloom once the disrupter (virus) faces gloom!
Coronavirus- Disrupting the game of economics!
How well the game could be played if all participants can't participate actively? Considering global participants who earn rewards (points in form of money), how wisely could the scattered game of economics be restarted? Coronavirus has spoilt the global economic game. All participants have united to get rid of this major crasher!
This virus won't reverse the exchange rate in favour of one country. It's not that- the country with lower number of cases would face currency appreciation. This virus has disrupted the global demand and supply chains. The virus seems to promote the concept of self reliance at both micro and macro levels. At micro levels, the ones who depended on outside food have started cooking their own. Now, all work is self completed! At macro level, 'produce in own country' concept faces boost (Like raw materials, that came from foreign country). Anything from outside seems risky!
The disrupter of economy is promoter of essentials! Market for goods with inelastic demand like food is surviving while that with elastic demand faces a sharp contraction. This contraction outweighs the prior one. The boom in the market for new essentials like masks and sanitizers is temporary. This temporary boom can't bring economy out of its gloom. It could just ensure safety of citizens who could later work towards making economy bloom.
In coming quarters, GDP will definitely be low. But, should we be worried if it is due to fall in demand for non-essential items? Like rise in sale of masks lead to fall in sale of lipsticks. (Also, should we be worried if nature breathes? )
It is worrisome as all non essentials are not as non essential as lipstick. If industries remain shut, people don't work, economy halts! The incentive of money runs the global economy. No one voluntarily provides services. They need something so they trade off something. What matters is health and well-being of people. For that, economy has to be boosted. The field of science and technology is playing a major role. To boost life saviour fields, economy needs a boost. The major boost comes from non-essential items!
As earning stops, daily spending continues, household wealth declines, nation's deficit widens! Economy could be boosted when the clasher of economy faces a clash. When virus gets destroyed, global economy will restart. When the economy will witness a fresh, greener, beginning from a new initial point, Money- 'The Incentivizer of Production' shall show its magic too! It depends how well the nations' utilize it to make 'value added' bloom once the disrupter (virus) faces gloom!
