The context of the two crises, Covid-19 and the Global Financial Crisis, is different. However, one cannot help notice three similarities in the two crises, which are interconnected with one reinforcing the other.
The first similarity is how hubris is central to both the crises. Just like economic history is replete with recessions, human history is replete with pandemics. However, each time we overcome a recession and pandemic, we become overconfident and rubbish the possibility of it happening in future.
Pre-2008, the world economy was undergoing high growth and economists credited themselves. They scorned off any possibility of a recession, adding, “This
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