Nobel Laureate Spence: Be Prepared for Very Slow Economic Recoveries

The video discusses the unexpected impact of the pandemic, focusing on slow economic recovery, unobservable risks, and information gaps. It highlights the challenges of reopening economies and the importance of policy decisions. Concerns about unemployment and business recovery are addressed, emphasizing the need for stimulus and debt forgiveness to minimize economic damage.

What are the potential consequences of prolonged economic lockdowns?

What concerns does Michael Spence express regarding unemployment during the recovery phase?