Pereira, E.J.D.A.L.; Ferreira, P.; Pereira, H.B.D.B. COVID-19 in Stock Markets: A Complexity Perspective. Preprints2020, 2020050056. https://doi.org/10.20944/preprints202005.0056.v1
Pereira, E.J.D.A.L., Ferreira, P., & Pereira, H.B.D.B. (2020). COVID-19 in Stock Markets: A Complexity Perspective. Preprints. https://doi.org/10.20944/preprints202005.0056.v1
Pereira, E.J.D.A.L., Paulo Ferreira and Hernane Barros de Borges Pereira. 2020 "COVID-19 in Stock Markets: A Complexity Perspective" Preprints. https://doi.org/10.20944/preprints202005.0056.v1
This paper aims to analyze the effects of Covid-19 on financial markets from the perspective of Complexity. The Covid-19 pandemic has caused turmoil in financial markets and is already one of the most important financial crises in history, causing a fall in several stock markets as well as great volatility. Unlike past crises, which in most cases were caused either by problems of fiscal deficits or in the financial system, this crisis has its origin in an epidemic disease, which occurred in Wuhan, China, and quickly spread across the globe affecting transport networks, commerce and finance, and will affect the public debt of many countries. This is a systemic situation in which there is a need to consider several interconnected systems, financial instability and high financial risk, something that econophysics and some complexity theorists already do. Therefore, this paper intends to show, theoretically, the systemic and complex character of the recent financial crisis caused by Covid-19.
complexity; Covid-19; networks; stock markets; power laws
Business, Economics and Management, Economics
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