Will We Regret The Rescues From The Crisis?
Last updated 5/13/2020 at 5:10pm
The coronavirus crisis continues to be “the” story of our day. Few events have hit our lives and our economy with such force. We anxiously watch the daily data on cases and deaths, hoping to see the curves finally turn downward.
I have dubbed the economic damage caused by the virus the “mandated recession.” The current recession – and, indeed, we are in a recession – is unlike any of its predecessors. Typical recessions are caused by some “excess” in the economy, the most common being an over-indulgence in private debt.
In contrast, the mandated recession is a planned rece...