What is a K-shaped recovery? A K-shaped recovery occurs when an economy recuperates unevenly, and there’s a separate trajectory for two segments of the society. While the financial markets recover and grow, the real economy, or the flow of goods and services, gets worse. The United States expects to “celebrate independence” from Covid-19 by Independence Day (July 4), when vaccines will have been made available to all adults. But for many developing countries and emerging markets, the end of the crisis is a long way off. As we show in a report for the Institute for New Economic Thinking’s (INET) Commission on Global Economic Transformation, achieving a rapid global recovery requires that
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