Obviously, even the world is still struggling to control the pandemic and control its consequences on society, but we wonder what will happen the day after all this happens? How are we going to recover economically from this?
Global Economic Crises. Historical references
The following is a reference to three of the world economic crises in history considered to have the greatest global impact:
In 1929, as a consequence of excessive production, there came a time when due to the low wages of workers, supply exceeded demand, causing the closure of many companies and the dismissal of many workers.
On the other hand, agriculture suffered serious consequences due to the First World War and the United States Government did not support this sector.
Black Monday of October 19, 1987: known as The 1987 crash, considered the biggest collapse of the Wall Street Stock Exchange, when millions of investors in the stock market suddenly sold their shares, the impact was worldwide as a A month later, the world's main stock markets: Hong Kong (45.8%), Australia (41.8%), Great Britain (26.4%) and Canada (22.5%) suffered the lowest values in their history.
What measures were applied?
Certainly looking for references in the history of humanity of the events that marked it at some point, is not something new, in fact it is one of the most used techniques in the area of finance.
For the purpose of this publication, I will present a summary of the measures adopted and the results obtained:
The black Mars of October 29, 1929: When Franklin D. Roosevelt was elected president of the USA in 1932 and took office in 1933.
His policy to get out of the economic crisis was based on the implementation of the following measures:
1.-Application of severe bank controls to avoid future similar events.
2.-Increase of the credits granted through the authorization of the Federal Reserve.
3.-Ban on the convertibility of dollars into gold by American citizens, only the government and banks could do it.
4.-Issuance of paper money for around 3,000 million dollars causing a devaluation of the dollar by 40%, among other.
1.- Financial and economic support from the Federal Reserve as the nation's central bank.
2.-Repurchase of securities by a large number of companies to support demand and achieve market sustainability.
1.- Freezing of interest on long-term bank loans.
2.-Purchase of Wall Street debt by the US government.
3.-The United Kingdom injected £ 400,000 million to the eight largest banks and construction companies.
4.-Most of the affected countries increased tariffs on exports and imports.
5.-Expansion of credits, refinancing and extension of guarantees. among others.
However, we can highlight that the application of very specific measures related in the financial and economic field that could occasionally help or contribute to the execution of a post-pandemic plan for those countries whose affectation and economic situation is really compromised.
Finally, it is a commitment of all those who are at the forefront of the countries to direct all efforts to provide their citizens with a light at the end of the road in the face of the distressing situation that society is currently experiencing.
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