NAME : KSATRIA YUDHA PUTRA (1708822013)

MAJOR : MM
CLASS : H

Article Summary 1 :
The effect of COVID – 19 pandemic on global stock market volatility: Can economic strength
help to manage the uncertainty?

COVID-19 causes some countries to impose lockdown for varying periods causing global
economic disaster such as recession driven by decrease of house hold income till the increase of
unemployment.One of many are the effects on stock market volatility. Resilience scores (RES)
could significantly reduce the equity market variance. On the other hand, capitalism score (CPS),
governance score (COG), productivity score (PRO), health pillar (HEL) and development of
financial institutions index (FII) are the crucial determinants that could significantly reduce
market volatility. The central bank strategy to reduce the policy rate will only works in emerging
markets. In the developed markets, lowering the policy rate creates further un-certainty about the
future and increases the returns variance. Some other selected economic factors are found to be
particularly effective in reducing volatility in stock markets. Verma and Gustafsson (2020)
emphasize the importance of an urgent policy response from the government to face the change
caused by the global pandemic. Doidge, Karolyi, and Stulz (2007) on the other hand also
mention that country-level factors are more important than firm-level factors to ensure discipline
in the economy. Therefore, faced with economic turmoil due to the global pandemic,
governments and policy makers can emphasize the adoption and implementation of the right
economic policies by using a set of economic factors are shown to be effective.
 Article Summary 2 :
Do carbon emissions impact the health of residents? Considering China's industrialization
and urbanization?
Varying degrees of industrialization and urbanization among regions in China, creates great
diversity in regional CO2 emissions and their residence’s health. Industrialization and
urbanization can result in economic development of a certain area. But on the other hand, it
promotes increase of CO2 emissions that will bring long-lasting damages to residents' health
through global warming. A higher health risks are likely to occur in heavier carbon emissions
areas and within more years of accumulated carbon emissions. The main purpose of pursuing
industrialization and urbanization is to improve the living quality of residents, but into the
process, health problems caused by environmental degradation need to be addressed. Since
people from areas with lower levels of industrialization and urbanization suffer less health risk, it
is not necessary for local government to put a large amount of time and money in mitigation
measures. Instead, these regions could still focus on economic growth and infrastructure
construction, to promote high-quality development of urbanization and industrialization. As for
climate change, adaptation is a more cost-effective alternative than mitigation. Climate change
and carbon regulations effective climate policies, such as ETS, can help control and reduce
carbon emissions. Policymakers can conduct cost analyses, the added value from ETS, such as
savings in medical expenses and health benefits, should be considered.
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