Governments are spending big to keep the world economy from getting dangerously sick
The help is targeted at companies and individuals. More will be needed
Editor’s note: The Economist is making some of its most important coverage of the covid-19 pandemic freely available to readers of The Economist Today, our daily newsletter. To receive it, register here. For more coverage, see our coronavirus hub
A CHARACTER IN a novel by Ernest Hemingway once described bankruptcy as an experience that occurs “two ways: gradually, then suddenly”. The economic response to the covid-19 pandemic has followed this pattern. For weeks policymakers dithered, even as forecasts for the likely economic damage worsened. But in the space of just a few days the rich world has shifted decisively. Many governments are now on a war footing, promising massive state intervention and control over economic activity.
This article appeared in the Briefing section of the print edition under the headline "Experimental treatment"
From the March 21st 2020 edition
Discover stories from this section and more in the list of contents
Explore the editionMore from Briefing
Why America is vulnerable to a despot
Its democratic system is not as robust as it seems
The world’s economic order is breaking down
Critics will miss globalisation when it is gone
America’s fiscal outlook is disastrous, but forgotten
On the campaign trail, both main candidates largely ignore the problem