Plumbing ideas for crisis abatement
European governments are searching for ways to abate the sudden economic shock

European governments are searching for ways to abate the sudden economic shock from the coronavirus pandemic. This column proposes four ideas on lessening the negative effects of the sudden economic shock on private businesses:

1. Governments may defer or waive the collection of corporate and value-added taxes to enhance liquidity.
2. Credit bureaus and registries give governments data on which businesses to target with lines of credit or other financial assistance.
3. Governments can use the procurement system to prioritise publicly funded projects.
4. Businesses should be kept as going concerns through temporary suspension of certain bankruptcy procedures.

Read the full article written by Erica Bosio and Simeon Djankov at voxeu.org

Источник: Vox (VoxEU.org)