The coronavirus pandemic will cause greater long-term economic damage than the costs expected this year, a US economist told the Jackson Hole conference.

Businesses and investors will assign a higher probability that pandemics can and do happen and they will change their behaviours for decades to come, Laura Veldkamp said.

The paper by Veldkamp, Julian Kozlowski and Venky Venkateswaran emphasises that the psychological impact will have considerable economic effects. The higher perceived