Charles Wyplosz
Within a few days of the publication of the first Vox eBook on Covid-19, the authorities came up with a raft of decisions that were coherent with the economists’ analyses. But there is a risk that moral hazard considerations derail the policy responses. This column, taken from the second Covid-19 eBook, argues that casting moral hazard aside will be the acid test of the ability of member countries of the euro area to coordinate in a meaningful way when needed.
