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By Sree KOCHUGOVINDAN, Senior Research Economist, Aberdeen Standard Investments
In recent weeks, equity markets have suffered their steepest falls since 2008. This has prompted comparisons with the global financial crisis – the event that has defined the past 12 years. Is the comparison valid? What’s different this time, and how might that shape the global economy once the pandemic has passed?
Similarities?
Historically, periods of falling consumer spending or recessions have been preceded by a combination of factors: restrictive monetary policy, balance-sheet weaknesses, or rising risk-aversion that prompted households to save more. The origins and drivers of the current global shock are somewhat...
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