TUTKIMUS 29.4.2020

Persistence of unemployment increases the costs of the economic crisis

Persistence of unemployment increases the costs of the economic crisis

The coronavirus pandemic has caused a global economic crisis. Now that the initial shock has passed, public debate has begun on the economic consequences of the crisis. It is clear that Finland is plunging into a recession, but it is yet to be determined how deep. Compared with the recession of the early 1990s, a common feature is the collapse of total demand, which seems to lead to a sharp rise in unemployment. Could the lessons of the 1990s recession be applied to solve the current crisis?