So why dont most economists share the worries of so many conservative politicians, headline writers and ordinary citizens? Five reasons.
The first is, these are extraordinary times. Im not sure Frydenberg is right in claiming the pandemic is “without doubt, the biggest shock this country has ever faced,” but its certainly one of them. And its certainly the most economically devastating pandemic since the Spanish flu of 1919.
Illustration: Dionne GainCredit:
As we can see even more clearly in countries that have been less than successful than we have in containing the virus, between the direct damage caused by the lockdown and the psychological damage of great fear and uncertainty about what the future holds, the economy has been f…
Read the full article at: https://www.smh.com.au/business/the-economy/this-is-why-we-don-t-need-to-panic-about-record-budget-deficits-20200726-p55fj3.html
