First Aid for the Economy

A long time ago when I was in the Army I learned the basic principles of battlefield first aid. They are stop the bleeding, clear the airway and treat for shock. That is what the Fed and the Administration/Congress are now trying to do. It should not be viewed as a Keynesian stimulus.

Put bluntly they are trying to keep the economy alive by supporting people and businesses until the supply side of the economy recovers from the shock of the coronavirus. Put another way they are trying to put a floor under the economy with income support and a "whatever it takes" monetary policy. Thus the time for a classical Keynesian stimulus will come when the public health emergency passes.