Promoting Economic Recovery After COVID-19

This report focuses on fiscal policies aimed at bolstering the economic security and productivity of workers, small and mid-sized businesses, and state and local governments through a prolonged recovery from the worst ravages of COVID-19. We consider a timeframe of 12 to 36 months after the onset of the pandemic, when we expect business activity to resume, albeit at less than full capacity, and aggregate employment outcomes to be on an improved trajectory. We premise our recommendations on the expectation that macroeconomic conditions will be weak for some time and that economic life will take place amid sizable uncertainty about the future path of the virus causing COVID-19 and the fact that its economic consequences could outlast the worst of the virus itself.