The global economy has been deeply injured by several months of confinement, and the exit from lockdown will be accompanied by a gradual release of restrictions. Economic activity will be required to adapt to new social distancing regulations, and economists struggle to forecast when we will return to pre-crisis output and productivity. Some sectors may be hit harder (transportation, tourism, restaurants, public entertainment, amongst others) and will have to undergo a transformation. Nouriel Roubini affirmed that the pandemic had “delivered the fastest, deepest economic shock in history”, and the IMF managing director Kristalina Georgieva said: “never in the history of the IMF have we witnessed the world economy coming to a stand still.”
Governments, central banks and international bodies have immediately responded with large, often open-ended plans to provide liquidity and subsidies. In the short term, debt relief and capital support can alleviate temporary shocks to companies’ balance sheets. However, protracting these programs without an unbiased cost benefit analysis may start a subsidy war, perpetuate overcapacity in distressed sectors (Bénassy-Quéré, Marimon, Martin, Pisani-Ferry, Reichlin, Schoenmaker, Weder di Mauro (2020)), and maintain a lifeline to malinvestment.
Universidad Francisco Marroquin and the Journal of New Finance are launching an initiative to foster high quality research to discuss how the economy and the financial markets can recover from this crisis. We invite young and senior scholars that want to have an impact in shaping the vision of our university and participating in the policy debate.
Successful papers will be published in a Special Issue of the Journal of New Finance. Manuscripts shall be submitted by March 31st 2021, following the journal’s standard submission procedure.
More information: jnf.ufm.edu/journal/call_papers.html