What macroeconomic questions are raised by the COVID crisis?

The COVID crisis raises several macroeconomic questions. What is the effect of a fiscal policy that is so expansionary that the fiscal deficit has been increased by more than the loss of GDP? What is the effect of the ultra-expansionary monetary policy and fiscal deficit monetisation? Inflation? Asset price bubbles, i.e. an increase in wealth inequality? A search for safe haven assets? In a related manner, how will the forced savings accumulated during the crisis be used? To what extent will behaviour normalise after such an extreme crisis? This is a very important question, as the magnitude of the increase in unemployment and the number of bankruptcies will depend on the degree to which production normalises in the sectors in difficulty. Does a recession reduce potential growth (due to the loss of productive and human capital) or does it instead increase it (due to a Schumpeterian process, or a “roaring twenties” effect after the public health restrictions are lifted)? How much potential is there for interest rates to rise after the crisis and how big is the resulting risk of a debt crisis? This depends on the respective weights of monetary policy and excess global savings in explaining the decline in interest rates.