Economic impact, recovery and lessons learned by the Spanish flu and Covid-19 in Norway
Abstract
This thesis provides an analysis of the macroeconomic and socioeconomic impacts onNorway by two detrimental pandemics, the Spanish flu and Covid-19. This is accomplishedthrough comparative analysis of GDP per capita, stock market indices, mortality,unemployment, and other key indicators. These metrics highlight the social and economicconsequences of pandemics in Norway. By utilizing the IS-LM Model and insight fromKeynesian economics, this thesis explores how fiscal and monetary policies influenced therecovery efforts and long-term economic outcomes. The study identifies patterns ofvulnerability and resilience, and aims to contribute with evidence-based strategies in the faceof future policy making and crisis management.Examining the consequences of the Spanish flu and Covid-19 pandemics, insight emergesregarding the economic resilience and crisis management strategies. The Spanish flu broughtconsiderable economic and social disruption, defined by the high mortality rates, industrialdecline and reduced trade. In addition to the pandemic, the first world war exacerbated thisdisruption. The limited public health infrastructure and modest economic policies in Norwayat the time led to a slow recovery and highlights the vulnerability of minimal governmentintervention during pandemics. Adversely, the Covid-19 pandemic showcased the evolvedpandemic response capacity of the Norwegian government, where swift monetary and fiscalpolicies, such as the lowered interest rate stabilized the economy post the initial short termeconomic decline. These proactive measures and the robust healthcare infrastructurefacilitated a quicker recovery compared with the Spanish flu. Lessons to draw from theresearch and response of the Norwegian government is the importance of governmentalintervention, preparedness and adaptable public health infrastructure with enhancingresilience to future pandemics