A TIP Against the COVID-19 Pandemic

Author/Editor:

Reda Cherif ; Fuad Hasanov

Publication Date:

July 3, 2020

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

A universal testing and isolation policy is the most viable way to vanquish a pandemic. Its implementation requires: (i) an epidemiological rather than clinical approach to testing, sacrificing accuracy for scalability, convenience and speed; and (ii) state intervention to ramp up production, similar to True Industrial Policy (TIP), on a global level to achieve a scale and speed the market alone would fail to provide. We sketch a strategy to tackle market failures and implement smart testing, especially in densely populated areas. The estimated cost of testing is dwarfed by its return, mitigating the economic fallout of the pandemic.

Series:

Working Paper No. 20/114

Subject:

Frequency:

regular

English

Publication Date:

July 3, 2020

ISBN/ISSN:

9781513548852/1018-5941

Stock No:

WPIEA2020114

Format:

Paper

Pages:

47

Please address any questions about this title to publications@imf.org