(“Student borrowers today owe $ trillion, more than double the $ billion owed nearly nine years ago.
These shortfalls can disrupt the overall ﬂow of payments in the economy and severely constrain the spending of many households and ﬁrms. Fiscal policy, unlike monetary policy, can address this problem in a targeted manner by substituting lost income with transfers. [4] Now, the pandemic has forcefully resurged and stricter containment measures are back in force in many places, including Germany.