Scientists target negative impact of Covid-19












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            * A team of scientists from CERGE-EI
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            * takes aim at negative economic impact of coronavirus
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            A team of scientists from the Institute for Democracy & Economic Analysis (IDEA), a think-

            the Economics Institute of the Czech Academy of Sciences which is part of CERGE-EI (a join
            with Charles University) has offered its expertise to try and curb the negative economic i

            the coronavirus pandemic. In a new project, entitled “Idea anti Covid-19”, the team hopes 
            recommendations that will make a difference in the trying days ahead.
            There’s no little doubt that the Czech economy is suffering and will continue to do so the

            coronavirus holds the country in its grip but experts at CERGE-EI are not taking the situa
            The whole point of “Idea anti Covid-19” is to try and provide a buffer, at least of sorts,
            sectors of the economy – from services to production – take a hit. The head of the joint w

            Slobodyan, explains how his team aims to help:
            We can provide help based on experience with best practices, reinforced by appropriate dat
            studies. These recommendations are for the government, ministry experts, journalists and t

            Daniel Münich, Slobodyan’s colleague at CERGE-EI who heads IDEA, makes clear that doctors,
            epidemiologists, and others are on the frontlines when it comes to confronting the real da
            coronavirus infection; but the economy also needs all the help it can get. He says economi

            what they can to lessen the blow:
            We want to use our know-how so that people don’t find themselves out of work or in spirall
            that firms don’t shutter their doors for the last time and so that the economy can recover

            possible – once the worst has passed.
            IDEA’s first step was an article inspired by a post in a blog (A Fine Theorem) by Canadian
            Bryan (an associate professor at the University of Toronto), entitled The Simple Economics

            Distancing and the Coronavirus. The Czech team translated the article – which outlines the
            social distancing to limit the potential damage of the pandemic - and added Czech context.
            The original article used game theory to explore which kinds of restrictions could help es

            measured against the cost of letting the contagion run rampant. His findings? While social
            restrictions do have a negative impact economically, it is far less than letting a virus b
            society, leading to a huge loss of life and alarming swamping of the health care system.

            Indeed, in recent weeks the buzzword in the media and social networks has been “flattening
            ie. the use of restrictions to push down the infection rate from exponentially spreading f
            possible, by requiring people to stay home, to work from home, and for businesses to adapt

            tread water, all in the aim of ensuring there are enough beds when the crisis deepens and 
            professionals to help.
            A second article at IDEA, by economist Filip Matějka, examined steps recommended by govern

            in other countries around the world. According to many experts, it is essential at this po
            “freeze” economies where they stand and to try and help firms and households survive what 
            very difficult period. But he admits that things are likely to get worse before they get b

            When it comes to the virus there is still a lot we don’t know. We don’t know the exact mor
            that remains a big unknown in all economic forecasts. As a result we have to prepare for t
            scenario. It is essential to test as many people as possible to find out what the real num

            is. Not only to help those in need but to get a better idea about the full size of the pro
            can we gauge what solving the problem will cost.
            His recommendation? For the government to communicate quickly and clearly, to say what kin

            will take to help the economy so that firms, employees and independent entrepreneurs have 
            will be needed to weather the crisis financially. If the crisis continues longer and restr
            place, the government will have to promise support. Many people simply don’t have the fina

            survive without.
            What should not change, says economist Filip Matějka, is the current economic structure an
            plans: these need to be started up as quickly as possible once the virus is reined in. Abo

            is an optimist; while the changes ahead are great and the costs significant, he is confide
            the right measures the economy can survive the current crisis and thrive again. “Fast, tra
            fairs decisions” he suggests are what can best keep the Czech economy afloat and be ready 

            incidence of the virus falls.

            Translated by Jan Velinger

            Original article [ URL "https://iforum.cuni.cz/IFORUM-16717.html"]