ABSTRACT
The new risks coming from climate change may interact with the risks of a new pandemic, as the melting of permafrost will release ancient viruses and bacteria. The likely phases of the crisis and their financial consequences, as of the time of writing, are reviewed: the sanitary crisis, the liquidity crisis, the impact on financial institutions, and the potential long-term financial stability consequences of the crisis. Most of the events have been conditioned by the sanitary crisis, which makes the Global Covid-19 Crisis special in comparison to previous crises, notably the Great Financial Crisis. The International Monetary Fund’s Global Financial Stability Report, describes this phase of the liquidity crisis, which pressed central banks to intervene on a massive scale, easing tensions. The main mechanism of the crisis is the absence of revenues while fixed expenditures are still due, leading to losses that cannot be covered by liquid assets. There are direct and indirect costs related to cyber events.
