COVID-19 infections continue to rise across Japan every day. We need to assume that this highly contagious novel coronavirus will keep on seriously affecting people’s lives and the economy for a considerable period of time, and the government’s management of the economy to respond to the situation will be a major challenge going forward.

Just like many other countries around the world, Japan has taken unusual and aggressive steps to cope with the pandemic-induced downturn of the economy. As the COVID-19 crisis appears to be growing even more protracted, we are confronted with the serious challenges of how to keep up and develop the extraordinary policies — and how to cope with the side effects of these aggressive measures.

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