Economists race to merge epidemiology and macro

coronavirus

Covid-19 has created two crises: one in health, the other in the economy. For central bankers, the two are inextricably linked, but existing tools for forecasting economic indicators are ill-prepared for the complexities of a pandemic.

There are at least two pressing problems for economists to solve.

The first – a more achievable goal in the short term – is to design rule-of-thumb policies that can keep the economy running as efficiently as possible while saving lives through social distancing

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