'Time Suspended' A Self-Organizing Solution to Ensure the Economic Recovery

8 Pages Posted: 30 Jun 2020 Last revised: 13 Dec 2020

See all articles by Luca Donà

Luca Donà


Raphael Douady

CES Univ. Paris 1; Riskdata; Stony Brook university

Date Written: June 25, 2020


The crisis has affected different kinds of economic agents unequally: production engine businesses (those that deliver goods and services) have been affected much more than passive holders of financial or real capital assets. Economic time has essentially been “stopped” – with many businesses unable to collect revenues but still saddled with large time-based expenses that stress their liquidity jeopardizing their survival. We suggest declaring Time as Suspended and setting all interest rates on all financial assets and on all unproductive business real assets to 0% while the crisis perdures and concomitantly setting a grace period for any installment, while accordingly extending all contracts by the same amount of time – throughout the entire economy chains. In this paper we analyze the costs and benefits on various economy agents and the government and argue that everyone will be better off if an avalanche of closures, bankruptcies and legal expenses can be prevented.

Keywords: COVID-19, stimulus, economic crisis

JEL Classification: E60,E62,G01

Suggested Citation

Donà, Luca and Douady, Raphael, 'Time Suspended' A Self-Organizing Solution to Ensure the Economic Recovery (June 25, 2020). Available at SSRN: https://ssrn.com/abstract=3635812 or http://dx.doi.org/10.2139/ssrn.3635812

Raphael Douady

CES Univ. Paris 1 ( email )

106 bv de l'Hôpital
Paris, 75013

Riskdata ( email )

6, rue de l'Amiral Coligny
Paris, 75001

HOME PAGE: http://www.riskdata.com

Stony Brook university ( email )

Stony Brook, NY NY 10017
United States
9174769417 (Phone)
10017-2146 (Fax)

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