Repaying COVID-19 debt can wait

Adam S. Posen (PIIE)

Addressing the Treasury Committee of the UK Parliament, Adam S. Posen argued that governments should treat spending on coronavirus relief “as fighting a war” and warned against adopting austerity measures to repay the debt quickly. He praised central banks for creating “a floor underneath the financial panic” while emphasizing recovery will be determined by public health policy rather than central bank behavior.

Watch the full virtual event here.