A recent study predicts that the coronavirus pandemic could hold the economy back for decades due to a lack of risk-taking and decreased economic output.
The study, conducted by the Federal Reserve Bank of St. Louis, forecasts that the pandemic has incited fears that could reduce risk-taking behaviors by boosting the “perceived probability of an extreme, negative shock in the future.”
The research was released at the Federal Reserve Bank of Kansas City’s annual conference last week, according to USA Today.
The study comes as officials across the country are striving for a vaccine in the hopes it will help alleviate Americans’ fears about COVID-19 and get the economy back on track. But the researchers predict that the long-term economic impact could be “many times larger” if risk-averting behaviors persist past the pandemic.
Read more at The Hill.