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The government has introduced a number of new policy initiatives offering financial support to those who lost their jobs during the crisis. However, the policies have been costly, not comprehensive, and financed in a way that is both unfair and endangering the prospects of post-crisis recovery. An alternative plan is proposed.
I propose a universal freeze on balance sheets. This would be similar to a debt standstill but here applied to all obligations including rents and pension contributions. For struggling firms, the policy will take the form of temporary cessation of activities that could have legal status and allow them to continue at the end of the period of lockdown.