The More or Less Likely Macroeconomic Implications of the Great Lockdown

Following the outbreak of COVID-19, we hear a lot about “flattening the curve”, this applies to both the health and economic dimensions of the pandemics that cannot be considered independently. What are the macroeconomic effects of the Great Lockdown on key variables regarding business cycles, growth and development? What are the justifications for the fiscal and monetary policies being implemented and their current and future challenges ahead ? What do we know and what don’t we know about the path ahead? In this highly uncertain context, clearly no one can pretend to have all the answers. However, macroeconomics suggests some points that should not be lost to expect a better future for all.