David McWilliams: Ignore the austerity ‘jihadis’. Here’s an alternative economic strategy
The solution to financial woes brought about by Covid-19 is obvious. It is called Japan
The Shibuya Crossing in Tokyo. The central bank there keeps its discount window jammed open and accepts government debt as collateral at zero interest rates. Photograph: Behrouz Mehri/AFP via Getty Images
As the lockdown rules are eased, the economic and political ramifications of the Great Pandession of 2020 are only beginning to take shape. Some people are traumatised by the experience of the past three months while others look to the future with trepidation.
As is the case with most challenges, much hinges on the plan. What is the recovery plan? At the moment, there seems to be none bar the usual murmurs from the austerity jihadis – the old orthodoxy, who don’t seem to realise that the world has changed. We are not in Kansas anymore.