If the problem after a recession is the fall in potential growth, economic policy should focus on the supply side
The re is still a debate between demand-side and supply-side policies after the COVID crisis. But if: Households have accumulated financial reserves due to forced savings during the crisis; The recession, like the subprime crisis, drives down potential growth (due to the loss of productive capital, the loss of human capital and the proliferation of zombie firms), Then supply-side policies (improvement in companies’ financial situation, worker training) appear much more helpful than demand-side policies.