Recovering from the Pandemic: An Appraisal of Lessons Learned

The coronavirus pandemic has taken an enormous toll on lives, health, and the economy. Even though it continues, countries around the world are planning for the post-pandemic recovery.

This FEPS Covid Response Paper provides observations from the failures and successes around the world in dealing with Covid-19 and its economic aftermath. Professor Stiglitz explains why, even with the best policies, the economic fall-out from Covid-19 is likely to be severe: there will not be a V-shaped recovery, but rather a U-shaped one. The real question is how deep the U will be, and how long it will take before a robust recovery.

The author reviews the priorities for the recovery packages and highlights the areas in which government intervention is crucial.

Lastly, Professor Stiglitz examines the latest developments of the European response to the pandemic and puts forward a set of recommendations to complete the recovery package.