Trump: In California, You Have a Special Mask...—Noted
Wolf: US Global Role at Stake—Noted

Wolf: Long Economic COVID—Noted

Martin Wolf: The Threat of Long Economic Covid Looms https://www.ft.com/content/f9a0c784-712e-4bf9-b994-55f8d63316d9: ‘Covid-19 has left many patients with debilitating symptoms after the initial infection has cleared. This is “long Covid”. What is true of health is likely to be true of the economy, too…. To meet the threat of a “long economic Covid”, policymakers must avoid repeating the mistake of withdrawing support too soon, as they did after the 2008 financial crisis. This danger is real, even if there remains much uncertainty about how the crisis will unfold…. We know that many businesses have been hurt, as demand for their output collapsed or they were locked down. The second waves of the disease now crashing on to many economies will make this worse.... But we also know that things could have been far worse. The world economy has benefited from extraordinary support from central banks and governments.... We know, nevertheless, that what has already happened is going to leave deep scars. The longer the pandemic continues, the bigger those scars will be.... Fiscal policy has to play a central role, as it alone can provide the necessary targeted support... Governments have to spend. But, over time, they must shift their focus from rescue to sustainable growth. If, ultimately, taxes have to rise, they must fall on the winners. This is a political necessity. It is also right…


.#noted #2020-10-30 <https://www.bradford-delong.com/2020/10/wolf-long-economic-covidnoted.html>

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