In this post I want to have a bit of a brainstorm around the real shock we are facing with COVID-19 in the country. The key idea I wanted to think about was what type of shock this is – a supply shock, demand shock, or both!
Note that this is a public health crisis – and I recognise that these issues take precedence. But it is still important to think through the economic consequences, at least to understand what they are.
Three compelling tweets make the case for why the focus should be on supply, demand, or on some combination of both:Read more