Firms, cities, and regions in the economic policy response to COVID-19

The economic impacts of the COVID-19 crisis present novel dimensions with respect to the consequences that materialized after the Great Recession. They are also equally or even more heterogeneous across firms and regions. Pre-existing weaknesses have influenced the short-term trajectories of recovery of firms and regions and will be key for their response to the challenges of the new global equilibria and of the digitalization of the economy. A significant discontinuity in the pandemic economic policy response has been noted vis-à-vis the austerity measures that characterized the policy paradigm in the 2000s. An evidence-based approach is needed to couple the unprecedent resources allocated with tangible, inclusive, and timely impacts.