Governments have clearly pursued a “minimax” strategy

“ Minimax ” is a well-known strategy: in the presence of uncertainty, it consists in making decisions that minimise the loss or economic and social cost in a worst-case scenario (the minimum of the maximum loss). In 2020, there was uncertainty over: The severity of the health crisis; The magnitude of the fall in activity and employment; Financial markets’ capacity to absorb public debt. Applied to these three uncertainties, the minimax strategy led to: A strict lockdown of the population; Potentially excessive fiscal deficits; Full monetisation of these fiscal deficits. The minimax strategy has reduced the severity of the worst-case scenario. Ex post , there may always be regrets that it was used.