Need for sustainable accommodation of increased capital flows in countries with emerging economies – Saudi Gazette

Need for sustainable accommodation of increased capital flows in countries with emerging economies – Saudi Gazette

By Leonardo Badea

It has been already said and proven that the current crisis has different characteristics and implications than other crises from the past. We are in the presence of a pandemic/medical crisis that is moving towards an economic crisis and perhaps even a financial one, further down the road. Financial packages and anti-crisis measures taken by national states, international and European bodies are necessary and helping, easing but not yet solving the situation.

The test for unity of Europe in the face of a once in a hundred years disaster, quickly followed by clear and decisive proofs of solidarity took the form of a massive mobilization of nations and the initiation of unprecedented economic support programs.

We are in a situation of self-learning. It is very difficult to know from the beginning what the results of the economic measures will be (maybe this is exactly the challenge of economics), but we can discover along the way what type of instruments work under such circumstances (in a similar manner that we will discover the proper vaccine and treatment formulae for the disease).

It is equally true that there are development gaps between European economies, some of them being differently (more heavily) affected and