This Time is Different: The PEPP Might Not Work in a Sectoral Recession
Analisi approfondita
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).
Analisi approfondita
Autore esterno
Angela CAPOLONGO, Daniel GROS
Informazioni sul documento
Tipo di pubblicazione
Parole chiave
- analisi economica
- Banca centrale europea
- commissione PE
- conseguenza economica
- documentazione
- ECONOMIA
- economia monetaria
- epidemia
- Eurogruppo (zona euro)
- FINANZE
- INDUSTRIA
- istituzioni dell'Unione europea e funzione pubblica europea
- ISTRUZIONE E COMUNICAZIONE
- malattia da coronavirus
- politica industriale dell'UE
- politica monetaria unica
- politiche e strutture industriali
- QUESTIONI SOCIALI
- rapporto di ricerca
- recessione economica
- relazioni monetarie
- ripresa economica
- salute
- situazione economica
- UNIONE EUROPEA