COVID-19: A euro area safe asset and fiscal capacity are needed now

Open Access
Authors
Publication date 25-03-2020
Publisher VoxEU
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
  • Faculty of Economics and Business (FEB)
Abstract The COVID-19 outbreak that is hitting the euro area economy needs to be met by a powerful policy response beyond the emergency measures already in place. This column uses an empirically calibrated model to show that the creation of a safe asset and fiscal capacity at the centre – on which the debate has been ongoing for a long while – would be a powerful means to mitigate the economic impact of the crisis.
Document type Web publication or website
Language English
Published at https://voxeu.org/article/covid-19-euro-area-safe-asset-and-fiscal-capacity-are-needed-now
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