Bericht
A new policy toolkit is needed as countries exit COVID-19 lockdowns
When it became clear that the COVID-19 pandemic required widespread lockdown of all but essential firms, most governments took measures to protect vulnerable workers and firms from the worst effects of the sudden drop in activity. These measures included unemployment benefits, grants, transfers, loans at low rates and tax deferrals. Their nearly exclusive focus was protection. As lockdowns are lifted, as some of these measures come to an end, and as it becomes clear that some sectors will have to contract and others expand, the focus must progressively shift. As usual in the aftermath of a major shock, protection must be balanced with reallocation, taking into account changing prospects for sectors and firms. Incentives must be given to firms and workers to resume activity, and, when needed, to adjust. Debt inherited from the freeze must be restructured if unsustainable. But policymakers must also consider the consequences of heightened uncertainty about the course of the pandemic and the economy, and the large increase in the number of workers out of work. In other words, as governments in advanced economies move from freeze to exit, they must design measures that will limit the pain of adjustment. This Policy Contribution explores how such measures can be designed.Section 1 briefly describes the measures that were taken to accompany the lockdown, in particular in Europe and the United States. Section 2 presents the protection and reallocation architecture that should underlie the new measures, namely a combination of unemployment benefits to help workers, wage subsidies and partially guaranteed loans to help firms, and a process-light restructuring of legacy debts. Section 3 concludes.
- Sprache
-
Englisch
- Erschienen in
-
Series: Bruegel Policy Contribution ; No. 2020/12
- Klassifikation
-
Wirtschaft
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Blanchard, Olivier
Philippon, Thomas
Pisani-Ferry, Jean
- Ereignis
-
Veröffentlichung
- (wer)
-
Bruegel
- (wo)
-
Brussels
- (wann)
-
2020
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Bericht
Beteiligte
- Blanchard, Olivier
- Philippon, Thomas
- Pisani-Ferry, Jean
- Bruegel
Entstanden
- 2020
Ähnliche Objekte (12)
Bank liquidation in the European Union: Clarification needed
Last exit to Lisbon
Oberpolizeiliche Vorschriften vom 7. April 1897 über die Fleischbeschau für den Regierungsbezirk Mittelfranken
The economic potential and risks of crypto assets: Is a regulatory framework needed?
The long haul: Managing exit from financial assistance
Pro- and anti-competitive provisions in the proposed European Union Data Act
The Euro area's macroeconomic balancing act
There is room for improvement in the appointment of ECB executive board members
Private long-term investment in uncertain times
Current issues in evaluating structural reforms within the Lisbon Process: Comments and recommendations about the Lisbon Methodology (LIME) Working Group
The European Union-Russia-China energy triangle
Carving out legacy assets: a successful tool for bank restructuring?
Bank liquidation in the European Union: Clarification needed
Last exit to Lisbon
Oberpolizeiliche Vorschriften vom 7. April 1897 über die Fleischbeschau für den Regierungsbezirk Mittelfranken
The economic potential and risks of crypto assets: Is a regulatory framework needed?
The long haul: Managing exit from financial assistance
Pro- and anti-competitive provisions in the proposed European Union Data Act
The Euro area's macroeconomic balancing act
There is room for improvement in the appointment of ECB executive board members
Private long-term investment in uncertain times
Current issues in evaluating structural reforms within the Lisbon Process: Comments and recommendations about the Lisbon Methodology (LIME) Working Group
The European Union-Russia-China energy triangle
Carving out legacy assets: a successful tool for bank restructuring?
Bank liquidation in the European Union: Clarification needed
Last exit to Lisbon
Oberpolizeiliche Vorschriften vom 7. April 1897 über die Fleischbeschau für den Regierungsbezirk Mittelfranken
The economic potential and risks of crypto assets: Is a regulatory framework needed?
The long haul: Managing exit from financial assistance
Pro- and anti-competitive provisions in the proposed European Union Data Act
The Euro area's macroeconomic balancing act
There is room for improvement in the appointment of ECB executive board members
Private long-term investment in uncertain times
Current issues in evaluating structural reforms within the Lisbon Process: Comments and recommendations about the Lisbon Methodology (LIME) Working Group
The European Union-Russia-China energy triangle