This Time is Different: The PEPP Might Not Work in a Sectoral Recession
Djupanalys
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).
Djupanalys
Extern avdelning
Angela CAPOLONGO, Daniel GROS
Om detta dokument
Publikationstyp
Sökord
- coronavirusinfektion
- dokumentation
- EKONOMI
- ekonomisk analys
- ekonomisk konsekvens
- ekonomisk återhämtning
- ekonomiska läget
- enhetlig monetär politik
- epidemi
- EU-institutionerna och EU:s förvaltning
- EU:s industripolitik
- Eurogruppen (euroområdet)
- Europaparlamentskommitté
- Europeiska centralbanken
- EUROPEISKA UNIONEN
- FINANSER
- forskningsrapport
- hälsa
- INDUSTRI
- industripolitik och industristruktur
- monetära förhållanden
- penningväsen
- recession
- SOCIALA FRÅGOR
- UTBILDNING OCH KOMMUNIKATION