The main (economic) problem is social distancing, not lockdowns
By Scott Sumner
I’m not a fan of mandatory lockdowns. At the same time, I have argued that the crash in the global economy is mostly caused by voluntary social distancing, not mandatory lockdowns.
It seems like the Swedish Riksbank agrees:
Data released from the country’s central bank and a leading Swedish think tank show that the economy will be just as badly hit as its European neighbors.
That’s what I expected from the very beginning, although I would have much preferred to be wrong.
This is really bad news for the US, where some states are beginning to gradually lift mandatory lockdowns.