Andrew Bailey, Douglas J. Elliott, Victoria Ivashina, 21 January 2021

As the Covid-19 crisis continues, policymakers need to address a growing corporate solvency problem and the wider economic harm it could create. The true scale and broader implications of this issue are likely to be substantial. This column recommends three devices to support policymakers in addressing this solvency challenge: a set of guiding principles, a kit of policy tools, and a decision-making framework. These will help policymakers in taking the hard decisions necessary to prepare their business sectors for future growth and resilience.

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