Covid-19 challenges globalization by reassertion of national borders to protect individuals, economics professor tells Boom Bust

The impact of the Covid-19 pandemic on the global economy is projected to be devastating as the epidemic’s rapid spread has already led to the deaths of over 43,000 people and infected more than 871,000 worldwide.

Boom Bust is joined by John Quelch, Dean of Miami Business School, to talk about how the coronavirus crisis is shaping the global economy.

“Interlocking of economies that has occurred over the last twenty years both in terms of investment and trade flows is now being challenged by the assertion of national borders in the interest of protection of individual citizens,” Quelch says. 

“It’s ironic that a global pandemic has actually caused the resurgence of national instincts,” he notes, adding that “This is a global healthcare pandemic that no one can escape.”

Talking about China, Quelch says that Beijing has taken some strong and aggressive actions to inject liquidity immediately into the markets. “They also adjusted downward the RRR (required reserve ratio) that is imposed on banks that collectively is going to account to maybe around $100 – 200 billion of liquidity being put into the economy.”

He points to “a very strong commitment coming out of China to double down on investment in infrastructure, particularly, high-tech infrastructure, including 5G networks.”

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