This Time is Different: The PEPP Might Not Work in a Sectoral Recession
Analyse approfondie
30-09-2020
The COVID-19 recession is different from previous downturns because it originates in demand and supply disturbances which are highly specific to certain sectors (contact-intensive services). This sectoral nature renders aggregate demand policies, including monetary policy, much less effective. The PEPP was essential to prevent a financial crisis in the Spring of 2020; but there is no need to increase its size. In a sectoral recession, one should not expect much impact from central bank bond buying on inflation. This document was provided by Policy Department A at the request of the Committee on Economic and Monetary Affairs (ECON).
Analyse approfondie
Auteur externe
Angela CAPOLONGO, Daniel GROS
À propos de ce document
Type de publication
Mot-clé
- analyse économique
- Banque centrale européenne
- commission PE
- conséquence économique
- documentation
- Eurogroupe (zone euro)
- FINANCES
- INDUSTRIE
- institutions de l'Union européenne et fonction publique européenne
- maladie à coronavirus
- politique et structures industrielles
- politique industrielle de l'UE
- politique monétaire unique
- QUESTIONS SOCIALES
- rapport de recherche
- relations monétaires
- reprise économique
- récession économique
- santé
- situation économique
- UNION EUROPÉENNE
- ÉCONOMIE
- économie monétaire
- ÉDUCATION ET COMMUNICATION
- épidémie