 "borrowing, fiscal deficit, market, stimulus")
The Covid trauma has changed economics—maybe forever
Only a massive disruption like coronavirus can dislodge or jolt economic ideas that have been entrenched for decades. The pandemic could fuel a tectonic shift in economic theory and practice. The conventional practice until now has been that of taming inflation on priority and managing the pace of economic growth by adjusting the cost of private borrowing rather than by spending public money. The pandemic pushed aside those conventions around the world. In the new economics, fiscal policy took over from monetary policy. Public spending is the new norm and Central banks played a
