The vast arsenal of fiscal, monetary and legal measures used by Australian governments to offset the COVID-induced economic crisis have worked well. They did not prevent a recession (popularly defined as two quarters of negative GDP growth) but things could have been much worse.
What is particularly interesting is that the expected consequences have not shown up in the official statistics for financial distress insolvent companies entering administration and individuals declaring bankruptcy.
Indeed, a misleading impression of 2020 being one of economic good times could be gained from the statistics.
The big question is whether these statistics show government relief measures have averted economic pain or simply deferred it. As measur…
Read the full article at: https://insideretail.com.au/business/drop-in-insolvencies-and-bankruptcies-is-a-ticking-time-bomb-202103
