Global models for a global pandemic: the impact of COVID-19 on small euro area economies

Pablo Garcia Sanchez, Pascal Jacquinot, ÄŒrt LenarÄ iÄ, Matija Lozej and Kostas(Konstantinos) Mavromatis
Authors registered in the RePEc Author Service: Črt Lenarčič

Working Papers from DNB

Abstract: We analyse the COVID-19 pandemic shock on small open economies (SOEs) in the euro area in a unified modelling framework: the Euro Area and the Global Economy model. We find strong negative international spillovers affecting each of the modelled SOEs, stemming not only from the rest of the euro area, but also from the United States and the rest of the world. A lower bound on nominal interest rates in the euro area amplifies these spillovers, especially within the euro area. Furthermore, we find some positive spillovers from the fiscal measures implemented in the Euro area to combat the pandemic, including the new Next Generation EU instrument.

Keywords: DSGE Modelling, International Spillovers; Monetary Union; Euro Area; COVID-19 (search for similar items in EconPapers)
JEL-codes: C53 E32 E52 F45 (search for similar items in EconPapers)
Date: 2023-06
New Economics Papers: this item is included in nep-dge, nep-eec and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Journal Article: Global models for a global pandemic: The impact of COVID-19 on small euro area economies (2023)
Working Paper: Global models for a global pandemic: the impact of COVID-19 on small euro area economies (2021)
Working Paper: Global models for a global pandemic: the impact of COVID-19 on small euro area economies (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:dnb:dnbwpp:782

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