Aiming to balance budgets prematurely, after such a traumatic economic shock, is likely to prove self-defeating, writes Dimitri Zenghelis in his article for Forbes, cautioning against economic austerity in post Covid-19 times.
Further public spending will be necessary to build a post-Covid-19 economy that is inclusive, resilient and sustainable. This spending must boost productive capacity, secure sustainability and provide a short-term economic stimulus to offset the paradox of thrift caused by retrenched spending by nervous consumers and investors.
Dimitri Zenghelis
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