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Podcast – Stock Market and the Covid Recession
What do the ups and downs of the market mean for the economy and the ordinary person? In this episode of Econ Cafe 2020/21 podcast, Michael Mandel interviews Sean Flynn, author of McConnell/Brue/Flynn Economics, regarding the link between the Covid Recession and the stock market.
The podcast opens with a discussion of the difference between wealth and income and then considers the stock market. Michael and Sean emphasize that expectations can change quickly. When Covid hit early this year, the world stock markets fell sharply because people didn’t know how bad it was going to be. But any of these expectations could shift the other direction. Stock investors know that there is risk. That is why many diversify over the entire stock market rather than picking a small number. Sean and Michael close by talking about the impact that these fluctuations might have on the whole economy and consider the distribution of stock market wealth, or ownership of corporate equities.
Questions/Discussions:
- How do expectations about future profits relate to current stock prices?
- Do richer households own more or less stock compared with lower-income households?
Sources: Podcast Link, McConnell/Brue/Flynn Economics products, Flynn, Economics for Dummies , Mandel Survey of Economics course solution information.
