(Figure 7: Numbers in receipt of state payments by scheme) A standout aspect of the economic impact of the pandemic has been the pace at which economic conditions nosedived from the onset of the virus.
The key lesson from the euro crisis, from which I have first-hand experience, is how vital financial resilience is for the whole macro-economy, and for the real economy. The scale and severity of the impact of the financial disruptions, not only on banks, but also on employment and the public finances, came as a surprise to economists and policy makers alike.