Economists and COVID-19 : Ideas, Theories and Policies During the Pandemic

"Bringing together analyses of eight countries from America, Europe and Asia, this book offers an invaluable contribution to understanding the nature and trends of the economic debate in recent years, in which the Covid pandemic led the world into panic and paralyzed national economies." Hugo da Gama Cerqueira, Dean of the Faculty of Economic Sciences, Universidade Federal de Minas Gerais, Brazil This book examines and classifies different reactions to the COVID-19 pandemic from economists across the world. With the impacts of the pandemic experienced differently in each country, specific case studies are provided to highlight how the economics profession has responded to the challenges that have emerged from COVID-19. Key debates, such as the trade-off between health protective measures and the economic impacts of closing important sectors, are discussed, with a focus on the responses in China, the USA, Italy, France, Russia, Argentina, Brazil, India, and Palestine. This book explores the ability of economists to respond to economic and social crises, and provides insight into the ties between economic theory and economic policy in the modern world. It will be relevant to students and researchers interested in how economists have responded to the COVID-19 and what changes it might trigger. Andres Lazzarini is a Lecturer in Economics at Goldsmiths, University of London. Denis Melnik is Associate Professor in the Department of Theoretical Economics at the HSE University Contents 5 Notes on Contributors 7 List of Figures 12 List of Tables 14 1 Introduction 15 1.1 Introduction 15 2 China: Interpreting the Economic Impact of the COVID-19 Pandemic in the Context of National Goals 23 2.1 Reform Policy and Chinese Economists 24 2.2 Economic Research During the Fight Against the Epidemic 26 2.3 Main Fields of COVID-Related Economic Research 28 2.4 Economists and Political Leadership 32 2.5 Discussions on ‘Post-Epidemic’ Economic Strategy 35 2.6 Conclusion 36 References 38 3 COVID-19 and The Indian Economy: The Debate About a Wage-Led Recovery 40 3.1 Introduction 41 3.2 An Overview of the Economy and the Workforce 43 3.3 The Political Economy in India and Indian Economists 46 Under the United Progressive Alliance Government: 2004–2014 46 With the Bharatiya Janata Party at the Helm 46 3.4 The Case for Wage-Led Economic Growth in India 50 Theoretical View 50 Arguments in Favour of Low Wages 50 Investment, Credit and Other Growth Constraints 50 3.5 Measures to Tackle the Pandemic 54 Weakening the Workforce in Response to the Pandemic 54 Kerala’s Experience 54 3.6 Concluding Remarks 57 References 58 4 Palestine: The Pandemic Between Occupation and Neoliberalism 60 4.1 Introduction 61 4.2 Palestinian Economic Thought from Liberation to a Distorted Neoliberal Economy 62 The Economic Debate in Palestine 62 4.3 Palestine’s Response to COVID-19 71 4.4 Concluding Remarks 74 References 75 5 Economic Policy Debates in France Since COVID-19: A Lasting Shift in Macron’s Doctrine? 79 5.1 Introduction 80 5.2 French Economic, Political and Social Policies 81 Before Macron 81 Macron’s Doctrine 81 5.3 The COVID-19 Pandemic: Health, Lockdowns and the Economic Situation 83 The COVID-19 Pandemic 83 France’s Emergency Plan 83 5.4 Rupture or Continuity After COVID-19? 87 Economic Evaluation of Post-COVID-19 Policies and Strategies 87 The Mainstream Approach to Economic Challenges in France 87 The Heterodox Approach to Economic Challenges in France 87 5.5 Concluding Remarks 95 References 97 6 COVID-19 and Russia 99 6.1 Introduction 100 6.2 The Spread of COVID-19, and the Restrictions Brought In 100 6.3 Russia’s Economy Before and During the Initial Stage of the Pandemic 103 6.4 Russia’s Economic Profession and COVID-19 104 The Situation in the Economic Profession 104 Reactions to the Crisis in Theoretical and Empirical Studies 104 Policy Proposals 104 ‘In-System Liberals’ 104 Post-Soviet Academic Establishment 104 ‘Outside-The-System Liberals’ 104 Ultra-Conservatives 104 6.5 Conclusions 115 References 116 7 The Economy at the Time of COVID-19: Theoretical and Political Debates in the USA 120 7.1 Introduction 120 7.2 The Economy Before and During the Pandemic 121 7.3 Bibliometric Study and Source Selection 124 7.4 Impacts of the COVID-19 Crisis on the US Economy 131 US Fiscal Policy During the COVID-19 Crisis 131 US Monetary Policy During the COVID-19 Crisis 131 The US Labour Market and Inequality During the COVID-19 Crisis 131 7.5 Concluding Remarks 139 References 140 8 Economists and COVID-19: The Case of Argentina 146 8.1 Introduction 147 8.2 Macroeconomic Background 148 8.3 The Policy Response to COVID-19 151 8.4 Reception, Assessments and Debates on COVID-19 Policies 154 Debates on Non-pharmaceutical Interventions 154 The Fiscal Policy Response: Excessive or Not Enough? 154 Active Monetary Policy Under Dollar Shortage 154 8.5 Concluding Remarks 162 References 164 9 Economic Policy and Economic Research in Brazil During the Pandemic 167 9.1 Introduction 168 9.2 Economists in Policy-Making Before the Pandemic 169 9.3 The Pandemic Crisis and Economic Debate 172 9.4 The Pandemic Crisis and Economic Research 175 9.5 Final Remarks 177 Appendix 178 References 180 Index 185