Supply-side shocks of COVID-19 could linger for years

It’s now a trope to point out that the COVID-19 pandemic is unprecedented. Populations around the world responded to the threat of COVID-19 by changing their behaviour and governments moved in to reinforce those behaviours with varying levels of “stay in place” rules.

The economic shock – and how governments responded to that shock – has been equally unprecedented. Nearly every government pumped out vast quantities of cash to replace lost income and lost revenue to keep their population and their businesses, respectively, afloat.