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In the Common Interest of Health and Economy: A Scenario Calculation for Containing the Coronavirus Pandemic

Florian Dorn, Sahamoddin Khailaie, Marc Stöckli, Sebastian Binder, Berit Lange, Patrizio Vanella, Timo Wollmershäuser, Andreas Peichl, Clemens Fuest, Michael Meyer-Hermann
ifo Institute, Munich, 2020

ifo Schnelldienst digital, 2020, 1, No. 06, 01-09

In public debate about the further course of action in the fight against the coronavirus pandemic, the interests of health protection are often presented as being in conflict with the interests of the economy. This does not do justice to the problem. If premature easing of restrictions led to a second wave of infection, both consumer and investor confidence would be damaged. Many companies would have to shut down their business activities again regardless of government regulations, and the costs would be considerable. Conversely, however, an extension of the restrictions would also lead to health problems in other areas. The aim should therefore be to make the further fight against the pandemic sustainable and to reconcile economic and health objectives as well as possible.

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ifo Institute, Munich, 2020