What is happening to the real economy right now is straightforward from the perspective of the supply and demand for labor and capital. This perspective shows how the real-economy costs are massive, and largely unnecessary, especially to the extent that they continue more than a week or two. (I discussed the political economy of this here). This perspective shows how the recovery will look. This perspective shows why equities are so much cheaper, beyond what is "justified" by reductions in the future dividend stream (hint: Irving Fisher, but as I have written in the past, do not interpret "interest rate" as the yield on Treasury Bills or Fed Funds but rather as the profit rate on real capital). I will write up the details soon.
[email protected] (Casey B. Mulligan) considers the following as important: covid19, Labor market
This could be interesting, too:
[email protected] (Casey B. Mulligan) writes Notes on Families First Coronavirus Response Act, in reading order
[email protected] (Casey B. Mulligan) writes Has Lombardy Reached the Flat Part of the Daily Death Curve?