receiving unwarranted support from government. Predictions for the long-terms effects vary. The IMFhas forecast a contraction of 3% in the global economy, up to 6% in advanced economies; the ECBsuggests a shrinkage of between 5% and 12% for the eurozone. The latter compares with the narrower range of 4% to 5% following the globalfinancial crisis of 2008. Only in the longer termwill we know the full impact of Covid-19 on global economies and sectors of the economy in each country. We can already see which countries and industries have been hardest hit at the start of the pandemic, and future analysis will seek to investigate the links between recovery policies and industrial growth. Marwan Izzeldinis Professor of Financial Econometrics in the Department of Economics. The research paper How Covid-19 affected the G7 Stock Markets: Early Evidence from a ST-HAR Model, is co-authored with Professor Yaz Gulnur Muradoglu, Dr Vasileios Pappas and Dr Sheeja Sivaprasad. It is available on the SSRNwebsite. m.izzeldin@lancaster.ac.uk FIFTY FOURDEGREES | 29 ʼʼ ʻʻOverall, volatility increased by an average of 22 per cent. These spikes are comparable to the 2008 Global Financial Crisis, Black Monday, and even the Great Crash of 1929.
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