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Alan Mitchell

Budget can't do it all as this is no ordinary recession

Fiscal policy alone can't fix a pandemic induced supply-side crisis. This calls for unleashing the economy's productive capacity.

Alan MitchellContributor

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We should be careful about judging the government's COVID-19 fiscal policy as if this is a normal recession.

With the effective unemployment at more than 10 per cent, the government has been criticised for not making a stronger Keynesian effort to boost aggregate demand and employment. But this recession is coming mainly from the supply side of the economy.

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Alan Mitchell writes on economics, policy, and infrastructure. Alan was formerly economics editor of the Financial Review and has also worked for the ABC and The Sydney Morning Herald.

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    Original URL: https://www.afr.com/politics/federal/budget-can-t-do-it-all-as-this-is-no-ordinary-recession-20200723-p55en1