COVID | Monetary Policy & Inflation
As the fight against COVID-19 continues, we ask: what lessons from war mobilisation can be employed to fight pandemics? Looking at this working paper from the Global Institute for Sustainable Prosperity, we consider the justification of large-scale fiscal stimulus to maintain the productive capacity of the economy. What the paper also demonstrates is that the longer the economy stays in lockdown, the higher the likelihood of stagflation returning.
What is Mobilisation Economics?
Normally, a market economy is geared towards maximising individual liberty. A mobilised economy works towards maximising society’s welfare by devoting all of its human capital, institutional capacity and its resources to a shared goal. For example, winning a war; or, in the current situation, flattening the curve.
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