The COVID-19 recession simultaneously calls on us to avoid structural damage and to encourage structural change. We need supportive policies to remain in place for as long as needed to avoid scarring of the economy and rising inequality.
However, we also need to acknowledge the permanent changes that are taking place and – to extract as much benefit as we can from them – start transforming the economy now. The potential for both structural damage and structural change emanates from the unprecedented impact of the COVID-19 recession on the services sector.