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COVID-19 Crisis: Fiscal Policy Should Lead and the Bank of England Should Follow for the Duration of the Crisis (VoxEU, 5 min read) With the UK’s conventional monetary policy space limited the BoE can support the government’s ‘whatever it takes’ pledge through Yield Curve Control or by temporary monetary financing of the deficit. Permanent money creation through a helicopter drop is another option.
A Proposal for Social Insurance During the Pandemic (Greg Mankiw, 2 min read) As targeted fiscal support takes time one solution is to provide everyone with monthly payments now and tax it later contingent on how much income has fallen. Where earnings don’t fall this will amount to a loan which will be fully repaid.
Sicken Thy Neighbor Trade Policy (Marginal Revolution, 2 min read) Export bans on health equipment are misguided as both the globalised production process means equipment relies on imported parts and such bans can lead to lower domestic production.