In most cases in Asia – Japan being an exception – the rise in activity along the upward part of the “V” has now been seen and the pace of growth has to moderate if overheating is to be avoided.
At the same time, risk premia did not disappear but moved broadly in line with fundamentals. The COVID-19 pandemic: rising public debt but progress towards a stronger EMU architecture The COVID-19 pandemic changed this. It once again tested the resilience of the single currency.