Covid-19: What can a war analogy tell us about this crisis?

Inflationary consequences

There is some sense that markets are beginning to feel somewhat calmer, although the daily swings we are continuing to see confirm that the volatility experienced over recent weeks is not over.

Politicians are increasingly referring to the efforts to counter the effects of Covid-19 as a war on the coronavirus.  It might therefore be worth exploring this metaphor and compare the economic impact of the virus with that experienced under wartime conditions. We have seen a significant increase in governmental participation in economies in response to the dramatic spread of Covid-19 and some of the normal rules of capitalism have been suspended, in line with what we would expect during a war. FCA issues scam warning amid coronavirus crisis However, there are some notable dif...