Abstract:

The Covid-19 pandemic process has negatively affected the world’s countries from psychological, sociological, economic and even political aspects. This effect; health, tourism, finance, production, food, etc. This has occurred in many sectors. The basic theory of this effect is the chaos theory and the pillow effect, which is one of its basic assumptions. When the first Covid-19 case was observed in the Chinese city of Vuhan, other countries in the world did not take sufficient measures in the beginning, considering that the disease was local. Therefore, the current situation faced unpredictable results and the financial markets experienced a great shock and panic. In fact, as it is also stated in the theory of the influence of the bear, "A bear the wing of a bear in Africa can cause a storm in America." So little things that seem to be irrelevant are actually the structure of the system, and in the future can lead to great negative effects in the system. This theory also applies to financial markets. Because the factor that affects the financial markets is so much that considering that one is unimportant can create negative effects to a level that can affect the financial markets as a whole. The impact of the Covid-19 process on the financial markets is thought to remain limited to the Chinese economy; however, the negative impact of the dolls anywhere in the world affects the whole world. In order to fight the global Covid-19 epidemic, it is necessary that the world’s nations communicate with each other and help in all matters and do not act alone. No country is expected to solve this epidemic by itself. First of all, pay attention to the health sector and vaccination, treatment, etc. to break this epidemic. Solutions are being produced. Then, under the title of financial support packages to get rid of the economic impact of the epidemic with a minimum of damage, measures such as tax discount, low interest loans, credit payment delay, subsidies and supports for, supports for the banking sector and increased market liquidity to overcome the cash shortage in the market are taken. The difference between this study and the empirical studies in literature is to determine which theory will explain the environment of uncertainty that the global epidemic generates and how this theory will impact the world financial markets.

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