Nobel Laureate Spence on Recovery From Covid’s Economic Shock

The video discusses the impact of exogenous shocks on global systems, focusing on the aggressive fiscal responses by governments to buffer economic impacts. It compares the pandemic management strategies of Asian and Western countries, highlighting the effectiveness of Asian responses due to prior experience and compliance. The importance of virus control for economic recovery is emphasized, noting the varied recovery rates across sectors. The discussion concludes with considerations for future support to sectors like leisure and restaurants, acknowledging the challenges of precise fiscal targeting.

What is an exogenous shock in the context of economic systems?

• A minor economic fluctuation

• A predictable economic event

• A factor originating outside the system

• A factor originating within the system

How did Asian economies manage the pandemic differently from Western economies?

• By focusing solely on economic growth

• By ignoring digital technology

• By having prior experience and established systems

• By inventing new systems on the fly

What is a key factor in achieving economic recovery according to the discussion?

• Ignoring the virus

• Controlling the virus

• Focusing only on green technology

• Increasing sovereign debt

Why might it still make sense to support sectors like hospitality despite potential permanent changes?

• Because they require no fiscal programs

• To ensure they go out of business

• To protect families and support transitions

• Because they are guaranteed to recover