Stopping COVID-19 without killing the world economy : a transition strategy

Abstract

The world economy cannot survive the current social distancing for more than few weeks. In this column, we sketch out a viable strategy to address the joint health and economic crisis caused by COVID-19. We focus on the transition phase that begins when the health care system exits critical congestion and yet a very large fraction of the population is not immune, with the risk of a new wave of infections. We do not consider other policy tools that are complementary to this one (e.g. macro policies to sustain demand).