The OECD’s New Approaches to Economic Challenges (NAEC) initiative convened a virtual seminar with Nobel laureate Michael Spence and INET Oxford Executive Director Eric Beinhocker on “Exiting and Learning from the COVID-19 Pandemic”. The event, which included OECD ambassadors and staff, was an opportunity to discuss the latest thinking on the likely trajectory of the crisis, paths to safely opening up economies, and longer-term implications. Spence discussed the danger the crisis presented to firm, household, and financial sector balance sheets and the potential for deep and long-term destruction of productive economic capacity. He emphasised that extraordinary policy responses were required to preserve balance sheets and may be required for longer than many expect. Beinhocker also noted that the exit path was likely to be significantly longer and bumpier than many policymakers and financial markets seem to be expecting, but offered a hopeful note that the longer-term lessons learned from the crisis might help us “build back better”.
Watch a video of the seminar here
The slides are attached to this entry.