The outbreak of the coronavirus epidemic is neither unprecedented nor intractable. However, its genesis in China, and its transitive impact on global economic activity, portend important lessons for economists.
Globalisation brings structural risks that have to be analytically recognised and addressed: Globalisation represented the triumph of the theory of comparative advantage as technology and innovation lowered the barriers to locating production in the most globally competitive locations. Production costs fell, and global aggregate demand increased, just as predicted by that theory. ...
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First Published: Thu, March 05 2020. 23:29 IST
