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SSRN Electronic Journal
Article . 2020 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2020
Data sources: EconStor
EconStor
Research . 2020
Data sources: EconStor
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The Socio-Economics of Pandemics Policy

Authors: Snower, Dennis J.;

The Socio-Economics of Pandemics Policy

Abstract

In response to the Covid-19 pandemic, governments around the world have provided a massive fiscal and monetary stimulus. While this policy is welcome in the short run, it does not address the underlying problem in the medium and long run. The reason is that the pandemic has not given rise to a generalized shortfall in aggregate demand. Rather, it has generated a Great Economic Mismatch, characterized by deficient demand for things requiring close physical interactions among people and deficient supply of things compatible with social distancing, where appropriate. Expansive macroeconomic policy can stimulate aggregate demand, but when social distancing is enforced, it will not stimulate production and consumption whenever this demand is satisfied through physically interactive activities. To overcome the Great Economic Mismatch, "readaptation policies" are called for. In the medium run, these policies promote a redirection of resources to activities compatible with social distancing; the long run, these policies make economies more resilient to unforeseen shocks that generate a Great Economic Mismatch. Once the pandemic is over, a more profound rethinking of decision making - in public policy, business and civil society - is called for. First, decision makers will need to supplement the current focus on economic efficiency by greater emphasis on economic resilience. Second, economic policies and business strategies will need to focus less on incentives for selfish individuals and more on the mobilization of people's prosocial motives. Finally, to encourage people around the world to cooperate globally in tackling global problems, policy makers at local, national and global levels will need to encourage people around the world to cooperate globally in tackling global problems, with the aid of two powerful tools that humans throughout history have used to coordinate their efforts: identity-shaping narratives and institutions of multi-level governance.

Keywords

ddc:330, H12, COVID-19, economic mismatch, economic resilience, E61, J2, macroeconomic policy, pandemics policy

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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
4
Top 10%
Average
Top 10%
bronze