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When a Pandemic Collides With a Leveraged Global Economy: The Perilous Side of Main Street (VoxEU, 18 min read) To ensure the CARES program delivers as promised, it should target businesses at risk of limited financing from the private market. The government should also alleviate the moral hazard that stems from bailing out highly levered corporates.
Why Are Fiscal Multipliers Asymmetric? The Role of Credit Constraints(McManus, Ozkan, Trzeciakiewicz, 33-page read) This study finds fiscal effectiveness can vary across the business cycle. Higher spending and lower taxes are more productive during an economic downturn compared with during an expansion.