NORDSCI Conference proceedings 2021, Book 2

Finance

IMPACT OF COVID-19 ON THE GLOBAL ECONOMY: IS FEAR OF AN INFLATION PANDEMIC JUSTIFIED?

Jasenka Bubic, PhD, Luka Bašic

ABSTRACT

International economies are fragile and vulnerable to the various volatilities that occur, due to classic economic imbalances caused by financial meltdowns, inflated balloons, or other internal and external macroeconomic shocks, due to unforeseen phenomena in the form of the economic term "black swan". The first focus of the paper was placed on examining the real impact of the virus on key macroeconomic indicators of the global economy and what is the attitude of international politics when it comes to creating a crisis structure. The implementation of the policy seen since the beginning of the 2020 crisis has led to the strengthening of an economic doctrine that is mitigating and out of mind, which has again shown that the world of central banks is easy on the "monetary trigger". The second focus of the work is singled out as a subtheme, where the current situation with China's Evergrande is to be addressed and how much impact the ultimate negative outcome can leave on the current recovery of the world economy. For the past twenty or thirty years, China's economic picture has led it to the world's second strongest economy, thanks precisely to the strong implementation of China's development policy. But rightly the world wonders what the real growth of the Chinese economy is. Labour's third focus has been placed on the issue of inflation as a potentially long-term problem. The implementation of the agreed policy over the last year and a half is a realistic reflection of the current situation with inflation. It is crucial to process whether its sudden jump can be a long-term problem for the entire economic structure of the European and global economies. Whether inflation can be corrected in the long run through the law of supply and demand, as has always been shown so far, needs to be seen.

KEYWORDS

Chinese Evergrande, impact of the virus, inflation, macroeconomic indicators

REFERENCE

NORDSCI Conference proceedings 2021, Book 2, Conference Proceedings, ISSN 2603-4107, ISBN 978-619-7495-14-0, IMPACT OF COVID-19 ON THE GLOBAL ECONOMY: IS FEAR OF AN INFLATION PANDEMIC JUSTIFIED?, 225-238 pp, DOI paper 10.32008/NORDSCI2021/B2/V4/20