• The Normal Economy Is Never Coming Back

    The latest U.S. data proves the world is in its steepest freefall ever—and the old economic and political playbooks don’t apply.
    Adam Tooze writes in Foreign Policy that this collapse is not the result of a financial crisis. It is not even the direct result of the pandemic. The collapse is the result of a deliberate policy choice, which is itself a radical novelty. It is easier, it turns out, to stop an economy than it is to stimulate it. But the efforts that are being made to cushion the effects are themselves historically unprecedented. In the United States, the congressional stimulus package agreed within days of the shutdown is by far the largest in U.S. peacetime history. Across the world, there has been a move to open the purse strings. Fiscally conservative Germany has declared an emergency and removed its limits on public debt. Altogether, we are witnessing the largest combined fiscal effort launched since World War II. Its effects will make themselves felt in weeks and months to come. It is already clear that the first round may not be enough.

  • Boris Is Worried Lockdown Has Gone Too Far, but Only He Can End It

    The British government had asked Britons to stay at home, but Fraser Nelson writes in The Telegraph that government modelers did not expect such obedience: they expected workers to carry on and at least a million pupils to be left in school by parents. The deaths caused by COVID-19 are shocking, he writes, but so, too, are the effects of the lockdown. “Work is being done to add it all up and produce a figure for ‘avoidable deaths’ that could, in the long-term, be caused by lockdown. I’m told the early attempts have produced a figure of 150,000, far greater than those expected to die of COVID.” The decision about when and how to reopen the economy is a tough call to make, but “it’s a decision that will be better made sooner rather than later,” Nelson writes.

  • Social Media Has Positive Possibilities in Pandemic

    Social media has the power to both inform and deceive – and do both at speeds we have never experienced. That fact has, once again, been on display as the COVID-19 epidemic has dominated social media platforms for weeks.

  • Spreading Dangerous News spreads: Why Twitter Users Retweet Risk-Related Information

    In an Internet-driven world, social media has become the go-to source of all kinds of information. This is especially relevant in crisis-like situations, when warnings and risk-related information are actively circulated on social media. But currently, there is no way of determining the accuracy of the information. This has resulted in the spread of misinformation.

  • Acute & Chronic Economic Considerations of COVID-19

    Just as the high probability of a pandemic was foreseen so, too, were the economic effects of such an event. COVID-19 is no black swan, nor is it an event for which we were not given warning shots. In the last three years, the U.S. intelligence community, the Council of Economic Advisers, the Department of Homeland Security, among other government agencies, specifically and in disturbing detail warned of the grave risk a pandemic would pose to U.S. health and economic wellbeing – with the U.S. intelligence community specifically warning of a “novel strain of a virulent microbe that is easily transmissible between humans continues to be a major threat,” and listed pathogens H5N1 and H7N9 influenza and MERS-CoV as potential culprits. Even as we weather COVID-19, the questions remain as to when, not if, the next infectious disease will emerge. We were unprepared for COVID-19, but, hopefully, we will learn a few lessons from it. Specifically, to better prepare for the next pandemic, we need a plan to sustain our economy at the individual, household, and firm levels so that we are not forced to shut down, accrue more debt, and, perhaps, never recover from the economic losses the outbreak causes.

  • Sandia Stimulates Marketplace Recovery with Free Technology Licenses

    Sandia National Laboratories has announced a new, fast-track licensing program to rapidly deploy technology to a marketplace reeling from the effects of COVID-19. The move is designed to support businesses facing widespread, often technical challenges resulting from the pandemic.

  • The Economic Recovery Won’t Only Be U-Shaped – It’ll Look Like a Wheelbarrow

    The economic effects of the coronavirus crisis will be severe but short-lived, according to much of the recent commentary. The cautious revival in stock markets points in the same direction, while recent polling suggests that 75 percent of business people share this view. Most of them expect economic activity to rebound this year. We hope that this optimism is correct, but the economic recovery will most likely be long and slow. We are talking U-shaped at best – and probably more like a wheelbarrow than a wok.

  • Social Media: Accurately Forecasting Economic Impact of Natural Disasters, COVID-19 Pandemic

    Social media should be used to chart the economic impact and recovery of businesses in countries affected by the COVID-19 pandemic, according to new research. Scientists describe a ‘real time’ method accurately trialed across three global natural disasters which could be used to reliably forecast the financial impact of the current global health crisis.

  • Climate-Related Disasters Increase Risks of Conflict in Vulnerable Countries

    The risk for violent clashes increases after weather extremes such as droughts or floods hit people in vulnerable countries, an international team of scientists finds. Vulnerable countries are characterized by a large population, political exclusion of particular ethnic groups, and low development. The study combines global statistical analysis, observation data and regional case study assessments to yield new evidence for policymakers.

  • The Data Speak: Stronger Pandemic Response Yields Better Economic Recovery

    With much of the U.S. in shutdown mode to limit the spread of the COVID-19 disease, a debate has sprung up about when the country might “reopen” commerce, to limit economic fallout from the pandemic. But as a new study co-authored by an MIT economist shows, taking care of public health first is precisely what generates a stronger economic rebound later. His study of the 1918 flu pandemic shows U.S. cities which responded more aggressively in health terms also had better economic rebounds.

  • Uncertain Climate Future May Disrupt Energy Systems

    Extreme weather events – such as severe drought, storms, and heat waves – have been forecast to become more commonplace and are already starting to occur. What has been less studied is the impact on energy systems and how communities can avoid costly disruptions, such as partial or total blackouts.

  • Pandemic Bonds: The Financial Cure We Need for COVID-19?

    Like other financial players that have embraced innovation in recent years, insurers too have developed novel tools and products. One such innovation is catastrophe bonds. A catastrophe bond provides the issuer (usually either an insurer or a reinsurer) with financial protection in case of a major catastrophe. Most catastrophe bonds cover extreme natural events such as hurricanes or earthquakes, but some bonds cover pandemics like the one the world is facing now.

  • Australia: Grim Story of Heat, Drought and Fire

    Record hot weather, drought and a devastating bushfire season in 2019 damaged our environment and natural resources on an unprecedented scale, according to the annual Australia’s Environment Report. “Last year was just another step down on the continuing descent into an ever more dismal future - unless we finally take serious action,” said the lead author of the report.

  • Online Economic Decision Tool to Help Communities Plan for Disaster

    Preparing a community’s buildings and infrastructure for a hurricane or earthquake can be an incredibly complicated and costly endeavor. A new online tool from NIST could streamline this process and help decision makers invest in cost-effective measures to improve their community’s ability to mitigate, adapt to and recover from hazardous events.

  • Coronavirus: Could the World Have Prepared Better for a Pandemic?

    As we deal with COVID-19 epidemic, obvious questions are being asked about how governments and companies can prepare themselves for these sorts of extreme events. One technique that has gained prominence in helping business people and officials deal with events that have a low probability but high impact is called scenario analysis or scenario planning. There are a number of different methods that can be used to model scenarios, but in essence these all involve developing stories about a number of possible ways that the future could unfold.