“…Dynamic analysis indicates the global market has exhibited abnormal behaviors and opened up new channels for information transmission beyond the traditional contagion mechanism. Furthermore, we show that the impacts of the COVID-19 crisis are more sudden and severe than those of the subprime and European debt crises, in line with the evidence in a series of influential papers that COVID-19 acts more like a short-term shock rather than a long-term crisis (Acemoglu et al, 2021;Augustin et al, 2022;Baqaee & Farhi, 2022;Barry et al, 2022;Caballero & Simsek, 2021;Duchin & Harford, 2021;Eichenbaum et al, 2021;Guerrieri et al, 2022).…”