Corona crisis: Liquidity takes priority

Michael Hüther, Michael Grömling, Martin Beznoska and Markus Demary

No 21/2020, IW-Kurzberichte from Institut der deutschen Wirtschaft (IW) / German Economic Institute

Abstract: The Corona crisis has clearly become an economic challenge for Europe. The spread of the virus represents both a negative supply shock and a negative demand shock across the economy at large. Securing the liquidity of companies is of top priority. Employment and household income can be stabilised through short-time allowances.

Date: 2020
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