This Time is Different: The PEPP Might Not Work in a Sectoral Recession
Indgående analyse
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).
Indgående analyse
Ekstern forfatter
Angela CAPOLONGO, Daniel GROS
Om dette dokument
Type af publikation
Nøgleord
- coronavirussygdom
- Den Europæiske Centralbank
- DEN EUROPÆISKE UNION
- dokumentation
- epidemi
- EU's industripolitik
- EU-institutioner og EU-forvaltning
- Eurogruppen (euroområdet)
- FINANSER
- forskningsrapport
- fælles monetær politik
- INDUSTRI
- industripolitik og -struktur
- monetære forhold
- SOCIALE SPØRGSMÅL
- sundhed
- UDDANNELSE OG KOMMUNIKATION
- udvalg (EP)
- valutaforhold
- ØKONOMI
- økonomisk analyse
- økonomisk konsekvens
- økonomisk opsving
- økonomisk recession
- økonomisk situation