Less Stimulus, More Overdraft Protection

Far and away the best policy solution I’ve seen to the economic hardships created by our response to the Covid-19 pandemic is a proposal by economist Arnold Kling. His analysis is that the U.S. has a personal and business liquidity problem, not a typical business-cycle recession that requires fiscal or monetary stimulus. Nor is it a bank liquidity problem, such as during the 2008 financial crisis. The immediate problem is that people and businesses are being forced into an unnatural cash crunch and loss of income to do the right thing for society.


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