Fighting the scarring effects of COVID-19

Abstract The large fall in global output and massive job losses during the current pandemic is creating a socio-economic upheaval that is likely to persist over time. From previous crises, we know that some of their effects are likely to leave permanent scars through what is known as hysteresis. This article discusses how the concept of scarring or hysteresis is relevant for the current pandemic-induced economic crisis. We discuss channels through which these effects can become persistent and how fiscal and monetary policies can minimize their consequences and work to create a global economy that is more resilient, more equal and greener.t

• Publication year

  2021

• Venue

  Industrial and Corporate Change

• Publication date

  2021-04-01

• Fields of study

  Medicine, Economics, Political Science

• Identifiers
  DOI 10.1093/icc/dtab030PMCID 8385959
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

• IMPACT OF COVID-19 ON EDUCATION

  2022cited by this paper
• The rise in inequality after pandemics: can fiscal support play a mitigating role?

  2021cited by this paper
• Should Inequality Factor into Central Banks' Decisions?

  2020cited by this paper
• The Political Scar of Epidemics

  2020cited by this paper
• Hysteresis and Business Cycles

  2020cited by this paper
• Unequal societies in usual times, unjust societies in pandemic ones

  2020cited by this paper
• NBER WORKING PAPER SERIES SCARRING BODY AND MIND: THE LONG-TERM BELIEF-SCARRING EFFECTS OF COVID-19

  2020cited by this paper
• Lasting Scars of the COVID-19 Pandemic

  2020cited by this paper
• NBER WORKING PAPER SERIES SOCIOECONOMIC DECLINE AND DEATH: MIDLIFE IMPACTS OF GRADUATING IN A RECESSION

  2019cited by this paper
• Financial Frictions and the Great Productivity Slowdown

  2017cited by this paper
• The Permanent Effects of Fiscal Consolidations

  2017cited by this paper
• Finance and Income Inequality: A Review and New Evidence

  2017cited by this paper
• Aggregate Effects of Gender Gaps in the Labor Market: A Quantitative Estimate

  2016cited by this paper
• Aggregate Supply in the United States: Recent Developments and Implications for the Conduct of Monetary Policy

  2015cited by this paper
• Redistribution, Inequality, and Growth

  2014cited by this paper
• Women Empowerment and Economic Development

  2012cited by this paper
• International Evidence on Recovery from Recessions

  2009cited by this paper
• News and knowledge capital

  2009cited by this paper
• Growth Dynamics: The Myth of Economic Recovery

  2005cited by this paper
• Financial Crises, Poverty, and Income Distribution

  2002cited by this paper
• Hysteresis and the European Unemployment Problem

  1986cited by this paper

• Hysteresis Effects on Post-Crisis Economic Recovery: Recent Evidence from Central European Economies

  2025influential citation
• Critical Human Security, State Capacity, and Policy Challenges in a Post-Covid-19 World: South Korea and the UK

  2025cites this paper
• The excess profits during COVID-19 and their tax revenue potential

  2024cites this paper
• Negative Life Events on Depression of Vocational Undergraduates in the Partial Least Squares Structural Equation Modeling Approach Perspective: A Mediated Moderation Model

  2023cites this paper
• Sovereign debt default and inequality

  2023cites this paper
• Special theme: Macroeconomic policies for inclusive sustainable development: A framework for inclusive and sustainable growth in Asia and the Pacific

  2022cites this paper
• Firm responses to the pandemic crisis: sticky capabilites and widespread restructuring

  2021cites this paper
• 22 Conclusions and Resources for Next Steps

  2021cites this paper