A Traditional Economic Stimulus Won’t Work. Here’s What Might.

More countries should follow Denmark’s example

A man walks through the U.S. Capitol Rotunda, empty of tourists as only essential staff and journalists are allowed to work.
A man walks through the U.S. Capitol Rotunda, empty of tourists as only essential staff and journalists are allowed to work during the coronavirus pandemic on March 24, 2020 in Washington, DC. Photo: Chip Somodevilla/Getty Images

Businesses would be able to temporarily cut labor costs, helping to keep them afloat in difficult times, while workers would be able to maintain their incomes and benefits without permanently losing their positions.

By enabling workers to stay at home without fear of infection or job loss, public furlough assistance could be the difference between a rapid post-quarantine recovery and a protracted economic and public health catastrophe.

Assistant Professor of Finance at the MIT Sloan School of Management, researching links between finance and the macroeconomy.

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