The recession and the pandemic: cause or trigger?

William White wrote an Intelligence Memo for the C D Howe Institute on 26 March 2020. He notes that the pandemic has certainly caused a recession, hopefully one followed by a “V” shape recovery, but it might also trigger a deeper and more prolonged downturn. In recent decades, global monetary policy has focused too much on short term effects and too little on the longer term consequences – like the continued build up of debt. Macroeconomic policies designed to support the economy in the face of the pandemic should balance off “urgency” with longer run “effectiveness”.