By invitation: Mark Carney on how the economy must yield to human values

VALUE WILL change in the post-covid world. On one level, that’s obvious: valuations in global financial markets have imploded, with many suffering their sharpest declines in decades. More fundamentally, the traditional drivers of value have been shaken, new ones will gain prominence, and there’s a possibility that the gulf between what markets value and what people value will close.

Current financial-market valuations reflect profound uncertainty over the path of the virus and the length of time that the global economy will remain shuttered. How many quarters of earnings will be lost? How quick will the recovery be once it comes?

Deeper concerns include the extent to which economies are experiencing supply destruction not mere disruption. How many once-viable companies will be permanently impaired? And how many people will lose their job and their attachment to the labour force? The answers to these questions—more...

via Business Feeds

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