Covid trauma has changed economics – maybe forever
Once ideas about how to manage the economy become entrenched, it can take generations to dislodge them. Something big usually has to happen to jolt policy onto a different track. Something like Covid-19.
In 2020, when the pandemic hit and economies around the world went into lockdown, policymakers effectively short-circuited the business cycle without thinking twice. In the US in particular, a blitz of public spending pulled the economy out of the deepest slump on recordfaster than almost anyone…
