The risks of exiting too early the policy responses to the COVID-19 recession

Nuno Cassola, Paul De Grauwe, Claudio Morana and Patrizio Tirelli

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This policy brief warns about the risks of discontinuing the policy responses to the COVID-19 crisis by pursuing exit strategies too early and/or too sharply. It outlines a comprehensive strategy for limiting such risks globally and offers an in-depth discussion of the European situation. Due to fiscal rules written in a pre- COVID-19 era and excessive emphasis on controlling public debt ratios, the Euro Area could be left with long-lasting scars, so its situation requires special treatment. Therefore, we articulate some policy proposals designed to preserve and strengthen the recovery in the EMU.

Keywords: Covid-19 pandemic; Euro area; fiscal and monetary policy mix; G20; regulatory policies; sovereign and corporate crises; Covid-19; coronavirus (search for similar items in EconPapers)
JEL-codes: J1 (search for similar items in EconPapers)
Pages: 5 pages
Date: 2022-06-01
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Research in Globalization, 1, June, 2022, 4. ISSN: 2590-051X

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http://eprints.lse.ac.uk/113327/ Open access version. (application/pdf)

Related works:
Working Paper: The risks of exiting too early the policy responses to the COVID-19 recession (2021)
Working Paper: The risks of exiting too early the policy responses to the COVID-19 recession (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:113327

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