The deadly coronavirus has killed more than 420 people and also infected over 20,000 people in over 24 countries leaving the leaders of the world scrambling for mitigating the effects of Coronavirus on not just the citizens but also the economy of the world. The former chair of the Federal Reserve, Janet Yellen has said during the talk on 4th of February talk which was held at the George Washington University that while she is seeing the coronavirus posing a major risk to the economy of the world as the epidemics of the past have had only the modest effects in the longer term.
The discussion has discussed the issues like the crisis of coronavirus and asked the economists if they had feared the epidemic based out of China may be triggering a shock for the world economy. He said that the coronavirus is most definitely something that may have an influence on the economy of the world for at least one or two quarters on the growth of China. And as China is a major player in the economy of the world, the spillovers are bound to take place.
It was further noted that the Coronavirus is a major disruption to the supply chain all over the world saying that the decision of the airlines to halt the flights to China isn’t just stopping the travel for people however it is also blocking the goods to be transported in the same flights. There is a lot of uncertainty about what is going to happen with the virus and if it is going to be contained adding that it is a significant concern for the world economy.
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