Risk of zombification in Europe: (1) employment

Shutting down the economy but protecting jobs was the watchword in Europe during the coronavirus crisis. Inspired by the German short-time working system (Kurzarbeit), all the major economies have set up systems whereby the state pays a large part of the wages of those working reduced hours. This limits bankruptcies and redundancies and cushions the shock on activity. There is no evidence that this has resulted in a zombification of employment. Like any emergency measure, the pro...