Managing the crisis and planning for the day after

The crisis that our world is passing through has challenged our institutions and our way of life in ways not seen for decades. Vibrant and welcoming cities have fallen silent; normally friendly and sociable people avoid each other. More fundamentally, the current crisis threatens a global depression just 13 years after the financial crisis and is straining the forces which unify the world in ways that no isolationist politician could ever achieve.

While policy responses may be context-specific, their ultimate direction should be the same: cushion the shock with fiscal expansion, take measures to reduce the persistence of the effects and follow up with a new social contract. This will combine reduced inequality and improved insurance together with a well-functioning market economy leading to better protection in the future and inclusive growth.

Immediate...