Donald Trump is wrong, the economic hit of the coronavirus will last for years

Consumer and business spending will stay cautious but the state can fill the gap. We must not turn off the taps too early, like in 2010

Donald Trump tells us that once Covid-19 is contained and it is safe to go back to work, the economy will be "great again". Is the US president right?

There is at least one reason to think he is. After all, unlike a hurricane or earthquake, the pandemic has caused no damage to the physical capital stock. It follows, Trump and his advisers argue, that we can pick up where we left off. The economy took a time-out but now output will rebound swiftly to pre-crisis levels and growth will proceed as before.

Related: The 2008 financial crisis will be seen as a dry run for Covid-19 cataclysm | Kenneth Rogoff