Limiting the Economic Fallout of the Coronavirus with Large Targeted Policies

This health crisis will produce significant economic side effects, reflecting supply and demand shocks different from those in other crises.

Targeted and substantial policies are needed to support the economy for the duration of the epidemic, keeping intact the network of economic and financial relationships between workers and enterprises, lenders and borrowers, and suppliers and end-users so that activity recovers once the outbreak is over. The aim is to prevent a temporary crisis from causing permanent damage to individuals and businesses as a result of job losses and bankruptcies.