Economic disruptions to help curtail the spread of the coronavirus started off small, but have now reached “critical mass” in the U.S. and across the world, Allianz Chief Economic Advisor Mohamed El-Erian said on “Bloomberg The Open.”
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The point of “critical mass” was reached over the weekend and the entire economy is close to a full-stop, he said. While this may be necessary as health concerns trump economic concerns, the fact is there will be a lot of financial and economic damage.
“Very few people understand the economics of sudden stops,” he said. “Even fewer understand the economics of fear and we