Figure 2.

Compound risk transmission channels

The COVID-19 and natural hazard shock entry points (black lines) and transmission channels to the main variables of the real economy (red), public (blue), and private finance (gray). A directionality is indicated for each arrow: a positive sign indicates that the variables comove in the same direction (either up or down, i.e., an increase in A leads to an increase in B), and a negative sign indicates that the variables comove in opposite directions (an increase in A leads to a decrease in B).