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Hubertus Bardt / Michael Hüther IW-Policy Paper No. 7 4. April 2020 An Economic Policy Exit Strategy from the Corona Lockdown

The fight against the corona epidemic has led to an insulation of the social and economic life and will have considerable economic consequences. Important areas of the industry and service sectors were shutdown partly or fully.

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An Economic Policy Exit Strategy from the Corona Lockdown
Hubertus Bardt / Michael Hüther IW-Policy Paper No. 7 4. April 2020

An Economic Policy Exit Strategy from the Corona Lockdown

IW-policy Paper

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The fight against the corona epidemic has led to an insulation of the social and economic life and will have considerable economic consequences. Important areas of the industry and service sectors were shutdown partly or fully.

A resumption of activity should happen as soon as possible, once the medical pre-conditions have been established and are being met. This requires a clear exit-strategy and several steps to enable the return to the previous welfare- and growth data levels.  

After securing the survival during the crisis via various liquidity lines and bridging loans, the restart of the economy requires in particular the re-launch of public infrastructure, especially of schools and kindergartens. To facilitate a coordinated and synchronized re-start of complex industrial value chains, we need clear signals on the planned schedule. A tax policy driven departure signal and a demand-side focused growth programme could make an important contribution for a new economic dynamic after the crisis.

 

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An Economic Policy Exit Strategy from the Corona Lockdown
Hubertus Bardt / Michael Hüther IW-Policy Paper No. 7 4. April 2020

Hubertus Bardt / Michael Hüther: Eine wirtschaftspolitische Exit-Strategie aus dem Corona-Lockdown

IW-policy Paper

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