The Economic and Financial Impacts of the COVID-19 Crisis Around the World

Expect the Unexpected

1st Edition - September 5, 2023
Authors: Allen N. Berger, Mustafa U. Karakaplan, Raluca A. Roman
Language: English
Paperback ISBN:
9 7 8 - 0 - 4 4 3 - 1 9 1 6 2 - 6
eBook ISBN:
9 7 8 - 0 - 4 4 3 - 1 5 2 7 3 - 3

The Economic and Financial Impacts of the COVID-19 Crisis Around the World: Expect the Unexpected provides an informed, research-based in-depth understanding of the COVID-19… Read more

Purchase options

LIMITED OFFER

Save 50% on book bundles

Immediately download your ebook while waiting for your print delivery. No promo code is needed.

Institutional subscription on ScienceDirect

Request a sales quote

The Economic and Financial Impacts of the COVID-19 Crisis Around the World: Expect the Unexpected provides an informed, research-based in-depth understanding of the COVID-19 crisis, its impacts on households, nonfinancial firms, banks, and financial market participants, and the effectiveness of the reactions of governments and policymakers in the United States and around the world. It provides reflections and perspectives on the social costs and benefits of various policies undertaken and a toolkit of preventive measures to deal with crises beyond the COVID-19 crisis.

Authors Allen N. Berger, Mustafa U. Karakaplan, and Raluca A. Roman apply their expertise to the research and data on the COVID-19 economic crisis as well as draw on their own rich research experience. They take a holistic approach that compares and contrasts this crisis with other economic and financial crises and assesses economic and financial behavior and government policies in the booms before crises and the aftermaths following them, as well as the crises themselves. They do all this with a keen eye on “Expecting the Unexpected” future crises, and policies that might anticipate them and provide better outcomes for society.

Cover image
Title page
Table of Contents
Copyright
Dedication
List of figures
List of tables
About the authors
Foreword
Preface
Acknowledgments
Part I: Focus of the book and other introductory materials
Introduction
Chapter 1: Introduction to the economic and financial impacts of the COVID-19 crisis and related topics
Abstract
1.1: The focus of the book—Be prepared by expecting the unexpected—and other introductory materials
1.2: Empirical evidence on economic and financial effects of the COVID-19 crisis around the world
1.3: Government policy reactions to the COVID-19 crisis and their economic and financial effects around the world
1.4: The extraordinary recoveries in real economies, banking sectors, and financial markets
1.5: Economic and financial effects during the aftermath of the COVID-19 crisis around the world
1.6: Lessons learned from the COVID-19 crisis
Chapter 2: The COVID-19 pandemic vs past epidemics, pandemics, and other health crises
Abstract
2.1: The effects of health crises on the populations of the world, their economies, banking sectors, and financial markets
2.2: The COVID-19 pandemic
2.3: Other health crises: Justinian Plague, Black Death, Spanish Flu, Yellow Fever, Acquired Immunodeficiency Syndrome (AIDS), H1N1, Ebola Virus, and the Opioid Epidemic
References
Chapter 3: The COVID-19 pandemic as a “black swan” event—Comparisons with natural disaster shocks
Abstract
3.1: How natural disaster shocks differ from health shocks in terms of manifestation, temporal duration, geographic dispersion, and contagion
3.2: Natural disasters: Institutional details
3.3: Natural disasters and economies around the world
3.4: Natural disasters and banking sectors around the world
3.5: Natural disasters and financial markets around the world
References
Chapter 4: Conceptual framework for economic, banking, and financial market cycles featuring crises
Abstract
4.1: Why economies, banking sectors, and financial markets are subject to significant cycles and crises
4.2: Behaviors by households, nonfinancial firms, banks, and policymakers that exacerbate cycles and intensify crises
4.3: Types of policies to moderate cycles and lessen the likelihood and impacts of crises
References
Chapter 5: Putting the COVID-19 crisis into context—Comparison with earlier global crises
Abstract
5.1: Similarities and differences among economic, banking, and financial market crises
5.2: The COVID-19 crisis (economic crisis)
5.3: The Global Financial Crisis (banking crisis)
5.4: The crash of 1929 (financial market crisis)
References
Part II: Empirical evidence on the economic and financial effects of the COVID-19 crisis around the world
Introduction
Chapter 6: Empirical evidence on the economic effects of the COVID-19 crisis on national and local economies
Abstract
6.1: Effects of COVID-19 crisis on GDP and unemployment outcomes
6.2: Effects of COVID-19 crisis on employment on the national and local levels
6.3: Effects of COVID-19 crisis on industrial exposure and other economic vulnerabilities/supply chain
References
Chapter 7: Empirical evidence on the economic effects of the COVID-19 crisis on households
Abstract
7.1: Effects of COVID-19 crisis on consumer demand and spending
7.2: Effects of COVID-19 crisis on consumer health, mobility, income, and employment
7.3: Effects of COVID-19 crisis on consumer credit cards
7.4: Effects of COVID-19 crisis on consumer mortgages, auto loans, and student loans
References
Chapter 8: Empirical evidence on the economic effects of the COVID-19 crisis on nonfinancial firms
Abstract
8.1: Effects of COVID-19 crisis on nonfinancial firm failures and performance
8.2: Effects of COVID-19 crisis on firm stockholders and other stakeholders
8.3: Effects of COVID-19 crisis on other nonfinancial firm outcomes
References
Chapter 9: Empirical evidence on the effects of the COVID-19 crisis on banks
Abstract
9.1: Effects of the COVID-19 crisis on lending and relationships
9.2: Effects of the COVID-19 crisis on bank profitability
9.3: Effects of COVID-19 crisis on bank risk
References
Chapter 10: Empirical evidence on the economic effects of the COVID-19 crisis on financial markets
Abstract
10.1: Effects of the COVID-19 crisis on the stock market
10.2: Effects of the COVID-19 crisis on the bond market
10.3: Effects of the COVID-19 crisis on the CDS market
References
Part III: Government policy reactions to the COVID-19 crisis and their economic and financial effects around the world
Introduction
Chapter 11: Putting the COVID-19 crisis policies into context—The Paycheck Protection Program (PPP) vs the Troubled Asset Relief Program (TARP) during the Global Financial Crisis (GFC)
Abstract
11.1: Comparisons of the programs
11.2: Empirical evidence on the economic and financial effects of PPP
11.3: Empirical evidence on the economic and financial effects of TARP
References
Chapter 12: Other policy reactions to the COVID-19 crisis in the US and their effects on local economies, households, nonfinancial firms, banks, and financial markets
Abstract
12.1: CARES Act provisions other than PPP
12.2: Federal Reserve actions
12.3: Corporate bond and loan purchase programs
References
Chapter 13: Policy reactions to the COVID-19 crisis in the rest of the world and their effects on economies, households, nonfinancial firms, banks, and financial markets
Abstract
13.1: COVID-19 financial aid programs
13.2: COVID-19 forbearance programs and other related policies
13.3: COVID-19 conventional and unconventional monetary policies
13.4: COVID-19 credit and liquidity facilities
13.5: COVID-19 asset and security purchases
13.6: COVID-19 fiscal and labor market support policies
References
Part IV: The extraordinary recoveries in real economies, banking sectors, and financial markets during the COVID-19 crisis around the world
Introduction
Chapter 14: Recovery evidence from the US
Abstract
14.1: Real economy recovery in the US
14.2: Banking sector recovery in the US
14.3: Financial markets recovery in the US
Chapter 15: Recovery evidence from the rest of the world
Abstract
15.1: Real economy recovery in the rest of the world
15.2: Banking sector recovery in the rest of the world
15.3: Financial markets recovery in the rest of the world
Part V: Empirical evidence on COVID-19 economic and financial effects during the aftermath around the world
Introduction
Chapter 16: Continuations vs scale backs of COVID-19 crisis policies in the crisis aftermath
Abstract
16.1: When and how should crisis policies be continued vs scaled back in crisis aftermaths to avoid policy traps
16.2: Policy continuations vs scale backs during the COVID-19 aftermath in the US
16.3: Policy continuations vs scale backs during the COVID-19 aftermath in the rest of the world
Chapter 17: Evidence on national and local economies during the COVID-19 crisis aftermath
Abstract
17.1: Evidence of GDP and unemployment outcomes during the aftermath
17.2: Evidence on employment on the national and local levels during the aftermath
17.3: Evidence of exposure by industry and other economic vulnerabilities during the aftermath
Chapter 18: Evidence on households during the COVID-19 crisis aftermath
Abstract
18.1: Evidence on inflation and consumer spending during the aftermath
18.2: Evidence on consumer credit cards during the aftermath
18.3: Evidence on consumer mortgages, auto loans, and student loans during the aftermath
Chapter 19: Evidence on nonfinancial firms during the COVID-19 crisis aftermath
Abstract
19.1: Evidence on nonfinancial firm failures and performance during the aftermath
19.2: Evidence on nonfinancial firm stockholders and other stakeholders during the aftermath
19.3: Evidence on other nonfinancial firm risk and financial needs during the aftermath
Chapter 20: Evidence on banks during the COVID-19 crisis aftermath
Abstract
20.1: Evidence on bank lending during the aftermath
20.2: Evidence on bank profitability during the aftermath
20.3: Evidence on bank risk during the aftermath
Chapter 21: Financial markets during the COVID-19 crisis aftermath
Abstract
21.1: Evidence on the stock market during the aftermath
21.2: Evidence on the bond market during the aftermath
21.3: Evidence on the CDS market during the aftermath
Part VI: Lessons learned from the COVID-19 crisis
Introduction
Chapter 22: “Expect the Unexpected” and prepare for future crises
Abstract
22.1: Assessments of research and data compiled on COVID-19 and applying these assessments in a challenging new world
22.2: “Expect the Unexpected” specific research and policy preparations for the future unknown economic and financial crises
22.3: Rough suggestions for adapting “Expect the Unexpected” research and policy preparations for other types of future crises
Appendix
Author Index
Subject Index

Allen N. Berger

Allen N. Berger is H. Montague Osteen, Jr., Professor in Banking and Finance at the University of South Carolina, President of the Financial Intermediation Research Society, Senior Fellow at the Wharton Financial Institutions Center, and Fellow of the European Banking Center. He has published over 125 articles in refereed journals, including in top finance journals, Journal of Finance, Journal of Financial Economics, and top economics journals, Journal of Political Economy and American Economic Review. He is co-author of two research books and co-edited all three editions of the Oxford Handbook of Banking. He serves on nine journal editorial boards, co-edited eight special issues of research journals, and formerly edited the Journal of Money, Credit, and Banking. His research has been cited over 90,000 times, including 30 articles with over 1,000 citations each, and another 19 with over 500 citations each. He has given invited keynote addresses on five continents.

Affiliations and expertise

Professor in Banking and Finance, University of South Carolina, President, Financial Intermediation Research Society, Senior Fellow, Wharton Financial Institutions Center, and Fellow of the European Banking Center, SC, USA

Mustafa U. Karakaplan

Mustafa U. Karakaplan is a Professor in the Finance Department in the Darla Moore School of Business at the University of South Carolina. He received his Ph.D. from Texas A&M University in 2012 and held appointments at Utah State University and Georgetown University. His research has been published in leading peer-reviewed journals including the Journal of Productivity Analysis, Empirical Economics, and Journal of Banking and Finance. His current research interests include Banking, Financial Intermediation, FinTech, International Finance, Financial Markets, Econometric Programming, Forecasting, Predictive Analytics, and Machine Learning. He has also been a co-investigator of a $19 million policy research project funded by the U.S. federal and state agencies, and private organizations.

Affiliations and expertise

Professor, Finance Department, Darla Moore School of Business, University of South Carolina, USA

Raluca A. Roman

Raluca A. Roman is Senior Economist at the Federal Reserve Bank of Philadelphia, and formerly at the Federal Reserve Bank of Kansas City. She holds a Ph.D. in Finance from University of South Carolina. Her research areas include banking and financial institutions consumer finance, corporate finance, and international finance. She has published articles in the Journal of Financial and Quantitative Analysis, Management Science, Journal of Financial Intermediation, Journal of Money, Credit, and Banking, Financial Management, Journal of Corporate Finance, Journal of International Money and Finance, Journal of Banking and Finance, and has received four awards for her papers at conferences. She also co-authored the book TARP and other Bank Bailouts and Bail-Ins around the World: Connecting Wall Street, Main Street, and the Financial System (2020, Elsevier). Raluca has presented her research and discussed the research of others at numerous finance and regulatory conferences.

Affiliations and expertise

Senior Economist, Federal Reserve Bank of Philadelphia; formerly Federal Reserve Bank of Kansas City, KS, USA