Psychological scars of downturns could depress growth for decades

FOR THE past 40 or so years, economists, central bankers and other eminences have gathered against the imposing backdrop of Wyoming’s Teton mountains every August, in order to chew over the great monetary challenges of the day. Not this year. As The Economist went to press the proceedings of the Jackson Hole symposium, organised by the Federal Reserve Bank of Kansas City, were unfolding online, thanks to covid-19. Those tuning in are all too aware of the economic damage wrought by the pandemic. But the headaches are only beginning. As one of the papers due to be presented at the conference explains, covid-19 is likely to reshape people’s beliefs about the world in ways that will complicate the already daunting task of restoring beleaguered economies to health.