Fiscal Follies in the COVID Recovery
With governments in advanced economies continuing to keep the fiscal taps open, it is worth considering whether additional stimulus is really what the situation demands. Unlike the aftermath of the 2008 crisis, the problem today is not a lack of purchasing power, but rather circumstances unique to a viral pandemic.
https://prosyn.org/n8ovA29
BRUSSELS – When COVID-19 went global about a year ago, the memory of the 2008 global financial crisis was still fresh, and policymakers pulled every lever at their disposal to maintain financial stability. The reaction to the previous crisis had indeed been somewhat slow and confused, especially in Europe, because no one at the time had ever dealt with anything like it before. But 2020 was different.