This Is Not the Time to Be Cautious. We Need to Contain the Economic Contagion of the Coronavirus

Pierre-Olivier Gourinchas

A real danger is that the virus mutates and infects our economic system, even as we manage to root it out of our bodies. The objective of economic policy cannot be to eliminate the recession altogether. The priority is to short-circuit all the negative feedback loops and channels of contagion that otherwise amplify this negative shock.

Read more>