Interview with the Bank of England's Governor Andrew Bailey on the impact of the Covid-19 pandemic

The transcript discusses the end of lockdown measures and the assumptions made about public behavior and economic recovery. It highlights the cautious optimism regarding the return to normalcy, considering the potential scarring effects on the economy. The challenges in economic forecasting are addressed, with a focus on the Bank of England's stance. The long-term impact on the economy and the role of policies in facilitating recovery are also explored.

What is meant by 'scarring effects' in the context of the economy?

What role do government policies play in the economic recovery process?