R-nought is the wrong number for markets, academics say

Rob Mannix
@RobMannix
29 May 2020

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As countries cautiously emerge from months-long lockdowns, all attention has focused on the R-nought – the transmission rate of Covid-19. Governments have made reducing this number one of the conditions for reopening their economies, and market participants are watching closely for signs of improvement.

But those counting on lower transmission rates to lift markets may be disappointed. The volatility of the R-nought, rather than the transmission rate itself, will have a bigger influence on

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