Worse before better? by Zsolt Darvas published by bruegel (2020).
“Why do we need a fiscal stimulus in this crisis?
Lockdown and social distancing measures confine many businesses that would not be able to survive without government help. Helping companies to pull through and workers to remain employed would lessen the depth of the recession and speed up the recovery when it starts. In addition, increased government spending boosts demand at a time when people consume less and companies invest less…”
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