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null Fiscal Measures We Recommend to Prevent the Economic Crisis from Devolving into an Economic Depression

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Fiscal Measures We Recommend to Prevent the Economic Crisis from Devolving into an Economic Depression
08 Apr 2020
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Clock 30 mins.
CATEGORIES: AER Public Spain Consumption Real Estate Banking Sector Monetary Policy Economic Policy Coronavirus
ANALYSTS:
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Leopoldo Torralba
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Ignacio de la Torre
This report proposes a set of measures aimed at reducing the breakdown of the productive fabric. It also reflects on how to rebuild the country and notably increase the probabilities that the economy heads down the path to recovery as soon as the medical crisis has been left behind. To this end, we analysed the potential loss of GDP triggered by this crisis and the direct capital injections required to reduce the damage. We discuss the best way to frame such measures and who should receive aid, how to finance it, the potential side-effects of the policies, as well as the countries that have implemented similar measures and the economists that support similar proposals.

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