In the words of Professor Klaus Schwab, who popularized this label: “It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.”1 Both these elements portend stormy times, for our way of life, society, families, and the institutions that we represent. But how should we react?
Regarding fiscal policies, an ambitious and coordinated fiscal stance remains crucial, as premature withdrawal of fiscal support would risk delaying the recovery and amplifying the longer-term scarring effects. National fiscal policies should thus continue to provide critical and timely support to the firms and households most exposed to the ongoing pandemic and the associated containment measures.