IMPACT OF THE CORONAVIRUS PANDEMIC (COVID-19) ON FINANCIAL MARKETS AND THE ECONOMY
IMPACT OF THE CORONAVIRUS PANDEMIC (COVID-19) ON FINANCIAL MARKETS AND THE ECONOMY

Summary/Abstract: The SARS-CoV-2 (Covid-19) coronavirus pandemic has severely affected the global economy.In 2020, due to the spread of virus, many countries experienced an economic recession. Duringthe first wave of the pandemic, there was also a crash in the capital markets, mainly in the securitiesmarkets, as a result of which interventionist measures within the monetary and fiscal policywere applied. When central banks lowered interest rates and the governments of individualcountries started implementing anti-crisis, interventionist programs of socio-economic policy,including fiscal policy and monetary policy, pessimistic moods on capital markets improvedsignificantly, the economic situation began to stabilize and the economies of individual countriesbegan to recover from recession and economic crisis. The authors of this article share the viewthat if the state had not applied specific systemic and normative instruments of anti-pandemicsecurity, and would not introduced a pandemic risk management system and would not havelaunched state aid under the so-called “anti-crisis shield”, the health of the economy and economiccrisis could be much deeper and more severe for society. The pandemic has also largelyaffected the daily functioning of people and many economic entities. In addition, the coronaviruspandemic has accelerated the digitization of the economy. The increase in computerization andthe internetization of economic processes could facilitate the recovery of many companies andenterprises from the crisis caused by the pandemic.

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