Unintended consequences of crisis management

This contribution attempts to decipher the largely unintended, still predictable consequences of crisis management in the global economy. In a series of improvised, case-by case and unilaterally demand-focused measures, governments tried to extend the Keynesian arsenal to a system whose basic features are unlike those of the national economy. While the collapse of output and employment, on par with the Great Depression, could indeed be averted, conditions for the resumption of sustainable finance and growth have been undermined.