COVID-19 and Its Impact on Financial Markets and the Real Economy

The COVID-19 pandemic severely disrupted financial markets and the real economy worldwide. These extraordinary events prompted large monetary and fiscal policy interventions. Recognizing the unusual nature of the shock, the academic community has produced an impressive amount of research during the last year. Macro-finance models have been extended to analyze the impact of epidemics. Empirical papers study the origins and consequences of the disruptions and the impact of policy interventions. New research evaluates the ongoing financial fragility and its relation to previous episodes and regulations. This special issue contains early contributions to this important and rapidly developing literature.(1)

Automated summary

The COVID-19 pandemic disrupted global financial markets and the real economy, leading to extensive research in academia. This research includes the extension of macro-finance models to analyze the impact of the pandemic, empirical studies on its origins and policy effects, as well as assessments of financial fragility and its relation to previous events.