Effects of Covid-19 on Euro Area GDP and Inflation: Demand vs. Supply Disturbances
Robert Kollmann ()
No 2021-12, Working Papers ECARES from ULB -- Universite Libre de Bruxelles
This paper analyzes the macroeconomic effects of the Covid-19 epidemic on Euro Area (EA) GDP and inflation, using a stylized New Keynesian model. Covid is interpreted as a combination of aggregate demand and aggregate supply disturbances. Offsetting aggregate demand and supply changes are shown to account for the stability of EA inflation, in the face of Covid. The evidence presented here indicates that Covid-induced aggregate demand and supply shifts were persistent. An aggregate supply contraction is identified as the dominant force driving the sharp fall of EA GDP in 2020.
Keywords: Covid; real activity; inflation; aggregate demand; aggregate supply (search for similar items in EconPapers)
Pages: 24 p.
New Economics Papers: this item is included in nep-eec and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/3253 ... KOLLMANN-effects.pdf Œuvre complète ou partie de l'œuvre (application/pdf)
Journal Article: Effects of Covid-19 on Euro area GDP and inflation: demand vs. supply disturbances (2021)
Working Paper: Effects of Covid-19 on Euro Area GDP and Inflation: Demand vs. Supply Disturbances (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eca:wpaper:2013/325393
Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/325393
Access Statistics for this paper
More papers in Working Papers ECARES from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().