In the News
Coronavirus: Impact on the Circular Flow
14th March 2020
Professor Richard Baldwin has adapted the circular flow diagram to identify some of the ways in which the coronavirus shock is impact on the macroeconomy. This is well worth a look especially if you are teaching and studying the causes of and policy responses to external demand and supply-side shocks.
"The economy continues running only when the money keeps flowing around the circuit. Roughly speaking, a flow-disruption anywhere causes a slowdown everywhere."
Read: Keeping the lights on: Economic medicine for a medical shock
The COVID-19 crisis has struck the economic ‘machine’ in several places at the same time by @BaldwinRE https://t.co/oCiZ9ZFPT4 pic.twitter.com/WEpqWRBfrN
— Linda Yueh (@lindayueh) March 14, 2020
More here from Gita Gopinath, Chief Economist of the International Monetary Fund.
The economic impact of #COVID19 is already visible in the countries most affected by the outbreak. IMF Chief Economist @GitaGopinath explains what countries can do to limit the economic fallout in a new #IMFBlog. https://t.co/1YxCme8kkk #coronavirus
— IMF (@IMFNews) March 14, 2020
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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