We also believe that there will be more granular changes in risk behaviors and consumer preferences. As simple as this sounds, this has significant effects on how products and services are produced and consumed. Changes will be nuanced across different economic activities. This is because it is the distribution of purchasing power that matters.
What can be bought, how and where things are consumed, the immediate preferences for investments, all these are likely affected by the income and risk aversion shocks which we outline in the FSR. We offer our vision for the New Economy to serve as an anchor towards which stakeholders may transition. This New Economy is not just a “post-COVID” world.