Financial Contagion: The Corona Threat to the Global Economy

The unprecedented spread of the COVID-19 pandemic compelled humankind to practice the social distance and lockdown of all sorts of business resulted not only in the global financial downturn but also brought unprecedented uncertainty ever seen in history. The different economical interventions are being widely discussed across the world to accelerate the safer economic system to diminish and control the current financial contagion. Policymakers have evolved different ideas and thoughts to protect the global economy from tackling various human and global crises. The study adopted an exploratory-cum-descriptive research design. Qualitative questions were addressed through discourse analysis, while quantitative data was analyzed and presented using simple statistical methods. With this background, this paper will emphasize the ramifications and ratifications of financial contagion that took place due to the coronavirus lockdown worldwide. It also throws insights into some of the initiatives taken up by the world’s voluntary associations, institutions, and governments to curtail the financial contagion of the current global lockdown crisis.