The Covid-19 shock to the dollar

Stephen Roach  |  Yale University  |  24 June 2020

Pandemic time runs at warp speed. That’s true of the Covid-19 infection rate, as well as the unprecedented scientific efforts under way to find a vaccine. It is also true of transformational developments currently playing out in pandemic-affected economies. Just as a lockdown-induced recession brought global economic activity to a virtual standstill in a mere two months, hopes for a V-shaped recovery are premised on an equally quick reopening of shuttered economies.

It may not be so simple. A sudden stop - long associated with capital flight out of emerging markets - often exposes deep-rooted structu...

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