02110cas a2200277 a 4500 AALejournalIMF021334 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513560182 1018-5941 BD-DhAAL BD-DhAAL Engler, Philipp. The Great Lockdown : International Risk Sharing Through Trade and Policy Coordination / Philipp Engler, Nathalie Pouokam, Diego Rodriguez Guzman, Irina Yakadina. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Voluntary and government-mandated lockdowns in response to COVID-19 have caused causing drastic reductions in economic activity around the world. We present a parsimonious two-country-SIR model with some degree of substitutability between home and foreign goods, and show that trading partners' asynchronous entries into the global pandemic induce mutual welfare gains from trade. Those gains are realized through exchange rate adjustments that cause a temporary reallocation of production towards the economy with the lowest infection rate at any point in time. We show that international cooperation over containment policies that aim at optimizing global welfare further enhances the ability of countries to exploit trade opportunities to contain the spread of the pandemic. We characterize the Nash game of strategic choices of containment policies as a prisoners' dilemma. Mode of access: Internet Pouokam, Nathalie. Rodriguez Guzman, Diego. Yakadina, Irina. IMF Working Papers; Working Paper ; No. 2020/242 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/242/001.2020.issue-242-en.xml IMF e-Library