To combat Covid-19, central banks, including the ECB, must cross the Rubicon of monetary financing and immediately transfer the 20%-30% of GDP this will cost into fiscal coffers, say Sony Kapoor, Managing Director, RE-DEFINE and William Butler, Special Economic Adviser of Citigroup and CEPR Research Fellow.
Covid-19’s economic impact on crumbling GDPs, collapsing tax revenues and ballooning fiscal deficits will be much larger than what has been reported thus far. Any hesitation in throwing everything but the kitchen sink at the health, employment, state aid and financial rescue interventions that are needed will literally kill citizens and destroy the economy, they write for VOX, CEPR policy portal.
