Scarred consumption | VOX, CEPR Policy Portal
Laurence Ball The crisis has left deep scars, which will affect both supply and demand for many years to come. Blanchard (2012) The Covid-19 pandemic in the US has led to volumes of initial claims for unemployment and unemployment rates not seen since the Great Depression period, pushing the economy into a recession. As policymakers map out potential recovery paths, much of the debate tends to focus on short-run and medium-run implications. Can we hope for a ‘V-shaped’ rebound, at least once vaccines have been widely distributed, or will it take a long time between economic decline and s...
Source: voxeu.org