A Brief Look Back at the Second Quarter (Q2 ) 2020: Why the ‘real Economy’ Is in Deep Trouble
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22 July 2020
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25 March 2020
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28 February 2020
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5 APRIL 2019
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A Brief Look Back at the Second Quarter (Q2 ) 2020: Why the ‘real Economy’ Is in Deep Trouble

Around the world, various governments have embarked on quantitative easing (QE), coupled with support programmes to help alleviate the disastrous economic impact of the COVID-19 pandemic. However, QE manifests as support for financial markets, rather than for the ‘real economy’.  Notably, QE is a tool whereby the rich get richer – from rising stock prices – in the hopes that the wealth effect will see them spend money that will trickle down into the real economy. As it stands, the real economy is in dire trouble – and business profits are falling – whilst the global financial economy is in an upswing with a stock market recovery that is in full force.  Equity prices are moving upward.

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