Contribution Biden to be more favorable on trade
Robert J. Barro By Robert J. Barro The top economic story of 2020 is the second quarter's COVID-19-related world recession. The associated partial economic lockdowns amounted to voluntary adverse supply shocks. These shocks led to unprecedented short-term declines in real GDP, on the order of 30 percent at an annual rate in the U.S. and many other countries. However, this downturn differed from previous recessions, as it did not feature substantial losses in physical or human capital and did not exhibit major dislocations in financial or housing markets. Instead, the situation amounted to everyone deciding simultaneously to take extended, though not enjoyable, vacations. This aspect of the recession created the potential for a sharp, V-shaped recovery, as has already occurred in the U.S. and elsewhere in the record GDP growth in the third quarter. The main sector left out of the U.S. recovery so far is the 20 percent or so concentrated in travel and leisure. These ar
