COVID-19 and Public Support for the Euro

Felix Roth (), Lars Jonung () and Aisada Most

No 13, Hamburg Discussion Papers in International Economics from University of Hamburg, Department of Economics

Abstract: The COVID-19 pandemic had disastrous effects on health and economic activity worldwide, including in the Euro Area. The application of mandatory lockdowns contributed to a sharp fall in production and a rise in unemployment, inducing an expansionary fiscal and monetary response. Using a uniquely large macro database, this paper examines the effects of the pandemic and the ensuing economic policies on public support for the common currency, the euro, as measured by the Eurobarometer survey. It finds that public support for the euro reached historically high levels in a majority of the 19 Euro Area member states in the midst of the pandemic. This finding suggests that the expansionary fiscal policies initiated at the EU level significantly contributed to this outcome, while the monetary measures taken by the European Central Bank did not have a similar effect.

Keywords: COVID-19; lockdowns; support for the euro; unemployment; inflation; monetary policies; fiscal policies; EU (search for similar items in EconPapers)
JEL-codes: C23 E24 E42 E52 E62 I18 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-ban, nep-cba and nep-mon
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https://www.econstor.eu/bitstream/10419/266428/1/hdpie-no13.pdf (application/pdf)

Related works:
Journal Article: COVID-19 and public support for the Euro (2024)
Working Paper: COVID-19 and Public Support for the Euro (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:uhhhdp:13

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