Webinar: Living in the Age of Coronanomics: What to expect in economics and from economic policy

Tuesday, April 28, 2020 - 13:00 to 14:00

 

On 28 April, we held a joint chamber webinar “Living in the Age of Coronanomics: What to expect in economics and from economic policy’’ which was led by Morten Hansen, Head of Economics Department at Stockholm School of Economics in Riga.

2020 was not set to be troublesome for the Latvian economy. That was two months ago. The world has rapidly changed since then. Morten Hansen talked about likely economic outcomes for Latvia and the world in the aftermath of COVID-19. It was stressed, however, that nobody can say for sure right now how big COVID-19 impact will have on economy, because nobody knows. What is definite is that either way it will be costly for everyone.

During the webinar, Morten talked about the growing EU North-South divide further highlighted by COVID-19. The newly formed Hanseatic League (comprising the three Baltic countries, Finland, Sweden, Denmark, Netherlands and Ireland) which replaced the like-minded Britain in the European political arena group following the UKs exit from the EU, will have a significant role to play during and in post-Covid EU and world. Morten also spoke about so called “corona bonds”. On 25 March 2020, nine Prime Ministers from, predominantly, southern European countries signed a letter, asking for a common debt instrument, known as “corona bonds” to be implemented– the idea behind the bonds is to create debt mutualisation, via a common euro bond for all countries to issue in order to share the economic burden. However, before this controversial instrument could be implemented many big questions surrounding the bonds value, the method of allocation to the various countries, as well as the criteria for issuing and receiving them will need to be hashed out and agreed at European Council.

We would like thank Morten Hansen for finding time to present an insightful glimpse into an uncertain future during our joint webinar.