Three essays on the economic recovery in the aftermath of the Covid-19 crisis

Abstract

As Covid 19 began to spread, people around the globe were faced with drastic changes in many aspects of their lives. In a response to “flatten the curve”, governments have imposed national lockdown, so all the non essential businesses were closed, people were required to limit trips outside border shutdowns were enforced, travel restrictions and quarantine shelter in place, led to huge disruptions of labour markets across the world, causing major income losses and sparking uncertainty about the future and fears of an impending economic crisis and recession. Economic contagion spread as fast as the coronavirus itself, upended family dynamics and undermined out economic stability , so they also rapidly altered how and where they spent their money. In fact, in the second quarter of 2020 consumption declined more than income, as households preferred to save, contradicting what the standard economic theory suggests. This occurrence for Italy as well as for other European countries, and for the United States.