Q. Which of the following three shocks have hit the global economy (particularly Indian Economy) since 2020?
1.Pandemic-induced contraction of the global output.
2.Russian-Ukraine conflict leading to a worldwide surge in inflation.
3.Synchronized interest rate downs by major central banks.
Choose the correct answer from below given codes:
Explanation: In general, global economic shocks in the past were severe but spaced out in time. This changed in the third decade of this millennium. At least three shocks have hit the global economy since 2020.
- It all started with the pandemic-induced contraction of the global output, followed by the Russian-Ukraine conflict leading to a worldwide surge in inflation.
- Then, the central banks across economies led by the Federal Reserve responded with synchronised policy rate hikes to curb inflation.
Source: Economic Survey