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This report assesses the policy response to the Covid-19 crisis to date and provides a set of recommendations to mold economic policy going forward. The document stress that while illiquidity has characterized the Covid-19 economic crisis heretofore, insolvency may come to bear on many businesses as economic strain from the pandemic continues. In view of this, the report recommends shifting policy from broad-based liquidity support to more targeted measures aimed at maintaining the health of the financial system as well as supporting firms that will likely be viable in a post-pandemic economy.
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