A Growing Possibility of a W-Shaped Economy Recovery

Washington Post: “Hopes of a quick bounce back for the economy — dubbed a V-shaped recovery — have faded. Even as parts of the nation reopen, many Americans will be afraid to venture out, and it looks increasingly likely that restaurants, stadiums and yoga classes are going to be operating at partial capacity, at best, for a while.”

“What isn’t getting as much attention is the possibility of a W-shaped recovery, the scary scenario when the economy starts looking better and then there’s a second downturn later this year or next. The ‘W’ could be triggered by reopening the economy too quickly and seeing a second spike in deaths from covid-19, the disease caused by the coronavirus. Businesses would have to shutter again, and people would be even more afraid to venture out until a vaccine is found.”