The Impact of COVID-19 on Global Financial Markets

Abstract

Financial markets have been under a lot of pressure, volatility, and uncertainty since COVID-19. Since the end of February 2020, global financial markets have been in a state of extreme uncertainty because unlike other pandemics, the spread rate of COVID-19 is much higher and more challenging to control. This paper examines the impact of COVID-19 on the global financial market and the harmful effect of the pandemic on the worldwide economy. The main negative trends of the modern world economy at the end of 2020 are summarized. The author highlights the economic costs of the spread of the COVID-19 pandemic. Proposals were formulated for the implementation of monetary policy in the context of the COVID-19 pandemic. The analysis of economic policy measures taken in the world's leading countries to smooth out the adverse effects of the spread of the global COVID-19 pandemic was also carried out. Under the conditions of the corona crisis, the economic damage associated primarily with quarantine restrictions led to a synchronous shock in the financial markets. The article will be of interest to economists and political scientists, stock market analysts, specialists in the field of the world economy, and people interested in the state of affairs in the world.