Recent global shocks: consequences and policies

The global economy has faced two major systemic shocks in recent years: the COVID-19 pandemic beginning in early 2020 and Russia's invasion of Ukraine in February 2022.Each event has had profound and far-reaching economic consequences, disrupting global supply chains, altering energy markets, and reshaping fiscal and monetary policy landscapes.While distinct in nature-one a public health crisis, the other a geopolitical conflict-both have exposed vulnerabilities in the global economic system and triggered significant policy responses.The COVID-19 pandemic began in late 2019, when a novel coronavirus (SARS-CoV-2) was first identified in Wuhan, China, and rapidly spread across the globe, prompting the World Health Organization to declare a global pandemic on March 11, 2020.Governments worldwide implemented stringent containment measures to curb the spread of the virus.These included lockdowns, social distancing mandates, travel restrictions, and the closure of non-essential businesses.While necessary for public health, these measures had severe economic repercussions, particularly in sectors such as tourism, hospitality, and retail.Indeed, the COVID-19 pandemic precipitated the sharpest global economic contraction since the Great Depression.Moreover, the pandemic accelerated the adoption of remote work, with many businesses transitioning to work from home arrangements to maintain operations.This shift had significant implications for productivity, work-life balance, and the future of work.The post-pandemic reopening phase during 2021 was characterized by shifts in consumer spending, supply chain bottlenecks, and energy and food price hikes associated to rising demand and the resumption of travel.In this context, Russia launched a fullscale invasion of Ukraine on February 24, 2022, triggering widespread international condemnation and a global geopolitical crisis that introduced a new layer of economic disruption.The war triggered a humanitarian crisis and devastated Ukraine's economy, but its effects extended globally through commodity markets, trade, and