Covid-19, asset prices, and the great reallocation

Whether COVID-19 will trigger an enormous reallocation of capital and labour is an integral question for policymakers and investors alike. This column demonstrates asset markets reveal large cross-sectional differences in the repricing of industries before, during, and following the onset of COVID-19. Firms that are more resilient to social distancing significantly outperformed in the six years before and through the COVID-19 outbreak. Looking at the future, commodity imply investors require significantly lower returns from more pandemic-resilient firms. Governments will be unwise to ignore these signals, directing public money mainly to prop up ailing low-resilience firms.

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Covid-19, inequality, and gig economy workers

Covid-19, inequality, and gig economy workers

Although some countries have provided assist with workers struggling to perform tasks from your home through the COVID-19 pandemic, certain types of workers have a tendency to fall through the cracks of the programmes. This column reports the findings of a survey of precarious workers in France, including gig economy workers such food delivery bikers. Traditional gig economy workers with incomes under €1,000 per month were much more likely to keep working regardless of the highly elevated health threat of doing this, suggesting that the support set up is leaving some low-income workers exposed.

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Covid-19, employment and women in oecd countries

Unlike most previous economic crises, this crisis gets the potential to accomplish disproportionate harm to women’s jobs and incomes. This column describers how confinement and distancing measures are threatening to shatter several female-dominated industries, including retail, accommodation services, and food and beverage service activities. This puts many women’s jobs at risk. And even though they don’t work in ‘at-risk’ industries, a lot of women are struggling to balance use the excess care responsibilities due to school and childcare closures. When formulating policy responses to the crisis, it is very important that governments usually do not disregard the impact the crisis can, is, and can have on women’s lives.

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Covid-19, government payments, and international remittances

Covid-19, government payments, and international remittances

Continuing its pivotal role in reforming IR markets worldwide, the World Bank could keep on monitoring and reporting on the option of remittance services worldwide and use stakeholders to boost the transparency and efficiency of the remittances market guided by the CPMI-World Bank collaborative effort. 7

Provision of safe and efficient G2P and IR services should be supported by strategic actions involving communication, consumer protection, and payment ecosystem maintenance. Proper communication of most actions through the entire implementation process is crucial in order to avoid implementation setbacks that may create greater health threats. Several countries have previously had bad experiences because of flaws within their communication strategy. 8

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Covid-19, central bank digital currencies, and other payments instruments

Covid-19, central bank digital currencies, and other payments instruments

Modernising Government-to-Person (G2P) payments is a long-term priority for the World Bank Group, even prior to the crisis. World Bank teams focusing on social protection, payment systems, financial sector, governance, and digital development regularly address this priority with country clients, lately with the support of partners like the UK’s Department for International Development (DFID), Switzerland’s State Secretariat for Economic Affairs (SECO), and the Bill and Melinda Gates Foundation. World Bank teams are actually actively supporting country authorities in adapting quickly to make sure that government social protection programs can address the brand new reality emerging from the pandemic and set up the inspiration for a competent G2P payment ecosystem.

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Covid-19 will raise inequality if past pandemics are a guide

Major epidemics in this century have raised income inequality and hurt the employment prospects of individuals with low educational attainment, while scarcely affecting people that have advanced degrees. This column argues that the COVID-19 pandemic could have similar distributional consequences unless this time around differs and government policies become effective in raising boats a lot more than yachts.

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The tragic death toll from COVID-19 has been accompanied by the upending of an incredible number of livelihoods as governments take necessary steps to limit the spread of the virus. More jobs were lost in america in March this season than over the complete Great Recession of 2008-09 (Coibion et al. 2020), with workers with significantly less than college education taking the biggest hit according to early evidence. Globally, job loss is estimated to be over 200 million, with 40% of the global workforce used in sectors that face risky of displacement and with limited usage of health services and social protection (ILO 2020). Such workers will face challenges in regaining their livelihoods even after economies begin to recover.

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Covid-19 the skewness of the shock

During recessions, some firms and industries get hit far harder than others. This column argues that the existing COVID-19 crisis is no exception. Some firms have experienced a poor demand shock, firms in the entertainment, services, and manufacturing sector have observed a dramatic decline in sales that’s more likely to persist over almost a year. The increase in the likelihood of firm-level disasters or, more precisely, the reduction in the skewness of the distribution of firms’ shocks, will play a substantial role in the response of aggregate output and employment.

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Covid-19 the economic policy response

The economic damage from the COVID-19 pandemic has already been tangible. In response, fiscal and monetary policies have already been introduced by many major economies. This column discusses results from a latest Centre for Macroeconomics survey on the policies suitable for coping with the economic crisis in the united kingdom. Broad consensus exists on the necessity to support households and businesses, through unemployment benefits, credit support, and direct transfers. Likewise, a considerable share of economists concur that higher public debt burdens shouldn’t be a concern along the way of supporting the economy.

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Covid-19 susceptibility, women, and work

As countries gradually loosen lockdown restrictions, you will have increased urgency to determine which segments of the populace are least vunerable to COVID-19 and should go back to work first. This column re-examines the info on ladies in Italy and finds that working-age women are more vunerable to the condition than working-age men, likely because of women’s over-representation in jobs – namely, health insurance and education – that expose them to an increased threat of contagion. Policies that depend on women replacing men as lockdowns lift could aggravate the problem instead of solve it.

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Cash in the time of corona

Many firms are facing an unprecedented turnover shock as the corona pandemic unfolds. According to the column, insights from the global financial meltdown claim that firms with high degrees of cash going into an emergency aren’t only better placed to weather the downturn but can enhance their competitive positions over time. During the financial meltdown, cash-rich firms could actually continue steadily to invest while industry rivals without cash had to divest. This resulted in a shift in competition dynamics, allowing cash-rich firms to outperform their rivals when the economy recovered.

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