from the St Louis Fed
– this post authored by Fernando Leibovici, Economist; Ana Maria Santacreu, Economist; and Matthew Famiglietti, Research Associate
Although the social distancing measures implemented during the COVID-19 pandemic are likely to have mitigated its health cost, they are having a devastating impact on the economy. About 33.5 million workers in the U.S. have filed for unemployment benefits since mid-March. Governments at both the state and federal levels are thus facing increasing pressure to “reopen” the economy to prevent the economic cost from having a persistent impact for years to come. An important and highly debated question is whether it is time to reopen and, if so, how to do so in a way that prevents the pandemic from flaring back up.
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