Insuring the survival of post-pandemic economies

NEW YORK: Lockdowns of entire cities. Panic in financial markets. Bare store shelves. Shortages of hospital beds. The world has entered a reality unknown outside wartime.

The substantial increase in the scale and scope of government action needed to tackle the COVID-19 pandemic should be viewed as an unprecedented form of short-term systemic insurance. This approach requires not only vast government spending but also a temporary state-led reorganisation of the entire economy.