In the past, people only knew the white swan exist, but one person saw it in Australia as a black swan and that man said that it is an unpredictable event in life to see a Swan of Black color.
The main definition of Balck Swan in world event is that it is an event in which nobody or even big economist will say when this will happen and how it will come.
But today the way world events happening like the war in Europe, the crisis in the economy or Asian, African, and Israeli conflicts may predict the Black Swan effect.
Many economists are saying that it will become a Black Swan event like already happened in the 2008 American crisis or the nine-eleven attack.
So what do those characteristics define the Black Swan effect let’s understand it?
When the Black swan event happens everything whether economist, science, or astrologist nobody can predict it. They can only help with what we have to do during this event and take proper action to get the economy to bounce again.
When this event happened it will show various impacts on the global economy like recession and affect low supply. When this happens every economist’s prediction fails and they just try to eliminate this by giving feedback to the government.
When the Black Swan event will happen every market will be badly impacted. The only way a company will survive who has more economic resources than the other or valuable products.
So this event is rare and no one can predict it. The only way to reduce the effects is to use all resources well to survive in this condition, because of that many companies run away from those investments which will not generate profit. Many startup funding goes down and some become bankrupt.
The economy under these circumstances went slow with higher inflation. So many jobs are taken away from the company, and the manufacturing sector’s productivity decreases. Supply-side will also decrease, and demand will also decrease means everything looks slow and rare.