Pandemic: practical reactions and theoretical questions Cover Image

Pandemia: praktyczne reakcje i teoretyczne pytania
Pandemic: practical reactions and theoretical questions

Author(s): Grzegorz W. Kołodko
Subject(s): Socio-Economic Research
Published by: Szkoła Główna Handlowa w Warszawie
Keywords: budget deficit; COVID-19; economic doctrine; impact of coronavirus on the economy; public policy; recession; unemployment

Summary/Abstract: Already before the pandemic, the world has been facing many challenges. COVID-19 made the situation more complicated, deepening the structural economic crisis. The blocking of economic activities, justified by medical reasons, results in an economic recession and an accompanying increase in unemployment, as well as loosening of monetary policy and the need for additional public expenditure. A part of this spending is necessary for social reasons and to save and support the business; a part is being swindled and misdirected or wasted. Budget deficits and public debt are increasing on a massive scale, which leads to moving away from austerity measures. Unusual perturbations, both in the real economy and in finance, pose new questions which orthodox economic thought often fails to answer. When the pandemic is over, not only will the economic policy search for ways to return to growth, but also the theory will formulate new thoughts.

  • Issue Year: 55/2020
  • Issue No: 2
  • Page Range: 5-14
  • Page Count: 10
  • Language: Polish