Imagine Corona virus or any epidemic disease affected globally. As a result, all the economy will be affected and people will face hard time. Will not it bring an affect in economic balance? Which will turn into high inflation globally and it will result collapse of the banking system. Will it? In my country, the situation is getting worse for product which we are depended on China. I can see a significant inflation here if Corona Virus issue continued.
It affects the economy sorely, of course. It might cause high inflation considering that the production industry will be terribly affected. The banks will also be affected, of course. A lot of people are now trying to make ends meet using whatever they saved for the previous months and years. There will be much larger withdrawals than deposits. For sure, people will take their money from the banks because they badly need it. This is happening because the business sector, the main money-making sector of any society, is crippled by the spread of the virus. Many employee are laid off. And when people are deprived of their regular sources of income, the inflow of the banks will also get weak.
