My Republica

Narendra Regmi and Krishna Sharma

Regmi is Assistant Professor of Economics at University of Wisconsin Whitewater (US). Sharma, PhD scholar in Economics, is co-founder of Sankhya Solutions based in Nepal

How to save the economy from the pandemic

Published On: April 22, 2020 12:14 PM NPT By: Narendra Regmi and Krishna Sharma

The coronavirus pandemic has completely engulfed the world. The United States is now the epicenter of the crisis. The worldwide shutdowns necessary to contain the spread of the virus has been quite detrimental to the global economy. What is good for public health has been devastating for economies around the world. In the United States, about 17 million people, more than 10 percent of the labor force, filed for unemployment claims during the month of March. Canada sheds more than one million jobs in March, which represents almost five percent of the country’s labor force. The statistics are unavailable for Nepal but if it were, it would be damning for the economy. Since there is no public provision for lost income in Nepal, there are no estimates to rely on to quantify the labor market effects of the economic shutdown.