Pandemic: what lessons for stabilisation policy ?

The economy continues to be tossed by the waves of the pandemic so drawing definitive conclusions from this shock is risky. Still, there is no denying that the macroeconomic debate has been turned upside down. In the decade prior to the emergence of the coronavirus, the dominant fear was deflation, even secular stagnation, as the fiscal lever seemed out of action for good. Yet what have we witnessed in the last two years? Record deficits causing a “V-shaped recovery” that is gen...