Coronavirus and debt: avoiding fatal economic policy mistakes

Asterès publishes a note written by economist Pierre Bentata, analyzing the potential impact of the coronavirus on the economy.

The briefing looks at the causes of the crisis and the potential solutions available to countries hit hard by the epidemic.

" The epidemic will therefore act as a bellwether for a "malinvestment" crisis, in which it is becoming very difficult to assess the health of companies. In this context, the unconventional measures implemented during the subprime crisis will be ineffective and must give way to strategies aimed at restoring liquidity to healthy companies while avoiding reinforcing the burden of global debt, which is the root cause of the crisis. "

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