I doubt that massive fiscal and monetary stimulus is the appropriate response to this “wartime” economic emergency. Gavyn Davies is honest and pragmatic in warning us to think about an exit plan /FT, 22 June 2020/.
However, we should admit that the size and especially the structure of the present “whatever it takes” policies are poorly crafted and mismanaged.
It is indeed wartime, in the sense of cold war 2.0, but the pandemic is something different. It is/was an out of the blue shock to both the people and our economies, followed by a quick V-shaped recovery.
It is still not too late to refrain ourselves from accumulating ever-larger public debts. We need targeted means to accelerate the recovery and structural reforms to gain the 2020s.
There are still sober places. The V4 countries, including Hungary this time, did not fall into the tempting trap of unsustainable public debts and budget deficits.
Governor Matolcsy, MNB, the Central Bank of Hungary