Let’s make the post-pandemic world socially and environmentally more sustainable – a better place.
This sentiment is common these days among both politicians and academics. At the same time, many crisis management decisions by governments, central banks, and other public institutions make an appeal to the idea that “there is no alternative” (TINA) when it comes to the policies we use in the immediate term to prop up the economic and financial system.
The disconnect between the laudable long-term intentions for change and what are perceived as short-term constraints is not just disconcerting, it is also potentially harmful. It ignores important lessons from recent crises, notably the 2008 financial crisis: short-term crisis management decisions can have significant, sometimes unintended, side-effects that undermine fundamental social policy goals.