Pandemic, Insolvency and Inflation?

by | Dec 3, 2020 | Blog Articles, Covid-19, Inflation

Following the Thanksgiving weekend, the US is experiencing a spike in daily recorded COVID-19 cases well above the summer’s previous highs. Hospitals and medical facilities are once again showing signs of extreme strain. Yet given the massive impact to the economy and human welfare of the second quarter’s ‘Great Pause,’ the possibility of renewed nationwide lockdowns and other restrictions has sent chills down the collective spines of employers and employees alike.

Early 2020 was a period of time when fear and panic seemed more contagious than SARS-CoV-2 itself. Leaders reached for the nearest blunt instruments available—lockdowns and travel restrictions—which shutdown wide sectors of the economy. Those actions had a devastating impact on economic and social well-being. Should similarly restrictive policies be implemented again, the consequences could include the first extended financial crisis in history willingly precipitated by self-inflicted measures.

Read the full article, “Pandemic, Insolvency and Inflation?” on Jackson Hole Economics.