Originally published at the Foundation for Economic Education (FEE) with Aaron M. Lane.
Right now, economies around the world are frozen in an attempt to deal with the COVID-19 pandemic. Governments have pulled every policy lever to keep it that way, for the time being, to limit the spread of the virus. Many people think that the economy will be unfrozen just like we would turn a machine off and on again. But unfortunately economies don’t work like that—unfreezing won’t be nearly as easy as many assume.