In particular, we have to know more to which extent we can rely on empirical analyses which, out of necessity or lack of sufficient recent boom-bust cycles, have to pool information from various boom episodes, happening in different countries under very specific and furthermore time-varying financial systems. Not all boom or bubble episodes are threatening financial stability.
There is a clear negative correlation between the extent of government-imposed restrictions, measured by the Oxford Stringency Index, and the fall in GDP projected for 2020 (Figure 5). However, the severity of the lockdown measures cannot fully explain the divergence in economic performance, as exemplified by the comparison between the Netherlands and Greece.