Governments across the world introduced various policies such as unemployment benefits, and tax deferrals to enable people to deal with the impact caused by the Covid-19 lockdowns.
As countries begin to reopen their economies, it is essential that governments introduce new policy changes that enable them to adjust to the new normal.
Adam Posen, president of Peterson Institute for International Economics, shared an article on the need for a new policy toolkit as lockdown measures are lifted across the world.
The article notes that some measures adopted during the lockdown such as employment benefits, grants and loans will come to an end.
In this environment, policy makers need to take into account the uncertainty facing the economies due to the Covid-19 pandemic, the article adds.
Governments should design new policies that enable people to adjust to the new changes after the lockdown is lifted.
A combination of unemployment benefits and pay cuts, tax deferrals and guaranteed loans are some policies that governments can consider.