The Economic Consequences of Pandemics

The recorded history of human civilisation is replete with instances of recessions that have brought financial despair upon the people. Pandemic-induced recessions are different because the adverse shock to the workings of the economy is purely biological rather than economic or financial. But they are no less destructive in their tendency to deflate economies and put all economic activity in peril. A study of the past episodes offers us a window into the lessons learned that could be valuable in managing today’s as well as future challenges caused by adverse shocks to the system.