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The Perfect Storm: Interventionism, Inequality, Decoupling and Zombies

storm clouds

By Carlos A. Primo Braga, Associate Professor, Fundação Dom Cabral and former Director, Economic Policy and Debt, The World Bank.
Covid-19 already ranks among the most impactful pandemics of the last 100 years. Most governments have put their economies in a temporary “coma” with a view to mitigate the spread of the virus (SARS-CoV2). This inevitably increases the economic pain associated with the pandemic in the short run and generates pressures for a quick return to normality. Lessons from the past, however, suggest that the health crisis can go on for much longer than most politicians anticipate.

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