Investment Institute

COVID-19: The return of the state

The response to the pandemic has seen governments intervene in economies, financial markets and everyday life with unprecedented speed and reach. Investors should expect this more expanded role of governments to stay. We outline the implications for investors in this piece.

May 25, 2020

27 minutes

The response to the pandemic has seen governments intervene in economies, financial markets and everyday life with unprecedented speed and reach. Investors should expect this more expanded role of governments to stay. We outline the implications for investors in this piece.

The fast view

  • The response to the COVID-19 pandemic has seen governments intervene in economies, financial markets and everyday life with unprecedented speed and reach. The experience of the crisis and the public policy transformation it has brought about amount to a reordering of the social contract.
  • Previously unthinkable policies have become the accepted, common sense solutions to new problems, fundamentally altering the way governments approach public health policy, resilience planning and surveillance of the population.
  • Burning issues around inequality, employment practices and the role of the corporation in society have been thrown into sharp relief by the uneven way in which the impact of the crisis has been felt and will remain at the top of the political agenda for the foreseeable future.
  • There are complex policy decisions to be made in all of these areas but in each case, the most readily available remedies share an expanded view of the role of government.

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Authored by

Daniel Morgan

Analyst, Multi-Asset

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This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

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All rights reserved. Issued by Ninety One, issued May 2020.