Macroeconomic Scenarios and Policy Intervention

Temporary closure of the production and commercial activities (lockdown) has been implemented to flatten the pandemic contagion effects curve. The peak has now passed, and we are now moving towards the decreasing phase of the contagion curve. However, there is now a diametrically opposite problem: we are now moving along the increasing part of the curve. In this note I describe the main tools implemented by policymakers to counteract the negative economic impacts of the pandemic event.