IDEAS home Printed from https://ideas.repec.org/a/bfr/bullbf/202123401.html
   My bibliography  Save this article

Monetary policy measures during the first phase of the Covid-19 crisis
[Les mesures de politique monétaire pendant la première phase de la crise de la Covid-19]

Author

Listed:
  • Penalver Adrian,
  • Szczerbowicz Urszula

Abstract

Covid-19 began to circulate in the euro area with a significant number of cases in late February and early March 2020. By 11 March, it had been declared a “global pandemic” by the World Health Organization, and increasingly stringent restrictions were imposed to contain the public health emergency. Economic activity in many sectors was effectively suspended almost everywhere in the world. Measured economic output contracted at the fastest rate recorded since World War II. Between March and June, in response to the first stage of the crisis, the major central banks implemented monetary policy measures that shared many common features. Together, and combined with extraordinary government emergency responses, they have cushioned the economic crisis by short circuiting amplification mechanisms. This article does not cover the policy response to the more recent “second wave” of infections, after summer 2020. Le virus de la Covid 19 a commencé à se propager dans la zone euro avec une flambée de cas fin février et début mars 2020. Le 11 mars, l’Organisation mondiale de la santé a déclaré une « pandémie mondiale », et des restrictions de plus en plus sévères ont été mises en place afin de juguler cette crise sanitaire. Concrètement, l’activité économique a été suspendue dans de nombreux secteurs presque partout dans le monde. Jamais, depuis la Seconde Guerre mondiale, la production économique ne s’était contractée aussi brutalement. En réponse à cette première phase de crise, les principales banques centrales ont pris, entre mars et juin, des mesures de politique monétaire, se caractérisant par de nombreux points communs. Associées aux mesures d’urgence exceptionnelles prises par les gouvernements, elles ont permis d’amortir la crise économique en contrant les mécanismes d’amplification. Cet article ne couvre pas la « deuxième vague » de contaminations, après l’été 2020.

Suggested Citation

  • Penalver Adrian, & Szczerbowicz Urszula, 2021. "Monetary policy measures during the first phase of the Covid-19 crisis [Les mesures de politique monétaire pendant la première phase de la crise de la Covid-19]," Bulletin de la Banque de France, Banque de France, issue 234.
    • Handle: RePEc:bfr:bullbf:2021:234:01
    as

    Download full text from publisher

    File URL: https://publications.banque-france.fr/sites/default/files/medias/documents/821162_bdf234-1_en_monetary_vfinale.pdf
    Download Restriction: no
    File URL: https://publications.banque-france.fr/sites/default/files/medias/documents/821061_bdf234-1_pol-mon_vf5mars.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lloyd, S. P., 2017. "Overnight Indexed Swap Market-Based Measures of Monetary Policy Expectations," Cambridge Working Papers in Economics 1733, Faculty of Economics, University of Cambridge.
    2. Stefan Avdjiev & Egemen Eren & Patrick McGuire, 2020. "Dollar funding costs during the Covid-19 crisis through the lens of the FX swap market," BIS Bulletins 1, Bank for International Settlements.
    3. Veronica Guerrieri & Guido Lorenzoni & Ludwig Straub & Iván Werning, 2022. "Macroeconomic Implications of COVID-19: Can Negative Supply Shocks Cause Demand Shortages?," American Economic Review, American Economic Association, vol. 112(5), pages 1437-1474, May.
    4. Andras Chabin & Sébastien Lamproye & Milan Výškrabka, 2020. "Are We More Accurate? Revisiting the European Commission’s Macroeconomic Forecasts," European Economy - Discussion Papers 128, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mukoyama, Toshihiko, 2021. "MIT shocks imply market incompleteness," Economics Letters, Elsevier, vol. 198(C).
    2. George, Ammu & Li, Changtai & Lim, Jing Zhi & Xie, Taojun, 2021. "From SARS to COVID-19: The evolving role of China-ASEAN production network," Economic Modelling, Elsevier, vol. 101(C).
    3. Marco Bottone & Cristina Conflitti & Marianna Riggi & Alex Tagliabracci, 2021. "Firms' inflation expectations and pricing strategies during Covid-19," Questioni di Economia e Finanza (Occasional Papers) 619, Bank of Italy, Economic Research and International Relations Area.
    4. Charles A.E. Goodhart & Dimitrios P. Tsomocos & Xuan Wang, 2023. "Support for small businesses amid COVID‐19," Economica, London School of Economics and Political Science, vol. 90(358), pages 612-652, April.
    5. Ginters Bušs & Patrick Grüning, 2023. "Fiscal DSGE model for Latvia," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 23(1), pages 2173915-217.
    6. David Baqaee & Emmanuel Farhi, 2020. "Nonlinear Production Networks with an Application to the Covid-19 Crisis," NBER Working Papers 27281, National Bureau of Economic Research, Inc.
    7. Gottlieb Charles & Grobovšek Jan & Poschke Markus & Saltiel Fernando, 2022. "Lockdown Accounting," The B.E. Journal of Macroeconomics, De Gruyter, vol. 22(1), pages 197-210, January.
    8. Graham, James & Ozbilgin, Murat, 2021. "Age, industry, and unemployment risk during a pandemic lockdown," Journal of Economic Dynamics and Control, Elsevier, vol. 133(C).
    9. Carlos Madeira, 2022. "The double impact of deep social unrest and a pandemic: Evidence from Chile," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 135-171, February.
    10. Werner Hölzl & Michael Böheim & Klaus S. Friesenbichler & Agnes Kügler & Thomas Leoni, 2021. "Staatliche Hilfsmaßnahmen für Unternehmen in der COVID-19-Krise. Eine begleitende Analyse operativer Aspekte und Unternehmenseinschätzungen," WIFO Studies, WIFO, number 66624, April.
    11. Alejandro G. Graziano & Yuan Tian, 2023. "Trade disruptions along the global supply chain," Discussion Papers 2023-06, University of Nottingham, GEP.
    12. Gopal K. Basak & Chandramauli Chakraborty & Pranab Kumar Das, 2021. "Optimal Lockdown Strategy in a Pandemic: An Exploratory Analysis for Covid-19," Papers 2109.02512, arXiv.org.
    13. Brada, Josef C. & Gajewski, Paweł & Kutan, Ali M., 2021. "Economic resiliency and recovery, lessons from the financial crisis for the COVID-19 pandemic: A regional perspective from Central and Eastern Europe," International Review of Financial Analysis, Elsevier, vol. 74(C).
    14. John Gathergood & Fabian Gunzinger & Benedict Guttman-Kenney & Edika Quispe-Torreblanca & Neil Stewart, 2020. "Levelling Down and the COVID-19 Lockdowns: Uneven Regional Recovery in UK Consumer Spending," Papers 2012.09336, arXiv.org, revised Dec 2020.
    15. Filippos Petroulakis, 2023. "Task Content and Job Losses in the Great Lockdown," ILR Review, Cornell University, ILR School, vol. 76(3), pages 586-613, May.
    16. D'Orazio, Paola & Dirks, Maximilian W., 2020. "COVID-19 and financial markets: Assessing the impact of the coronavirus on the eurozone," Ruhr Economic Papers 859, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    17. Wei Dong & Geoffrey Dunbar & Christian Friedrich & Dmitry Matveev & Romanos Priftis & Lin Shao, 2021. "Complementarities Between Fiscal Policy and Monetary Policy—Literature Review," Discussion Papers 2021-4, Bank of Canada.
    18. Philippe Andrade & Martin Arazi & Viacheslav Sheremirov, 2023. "The Aggregate Effects of Sectoral Shocks in an Open Economy," Working Papers 23-13, Federal Reserve Bank of Boston.
    19. Joshua Bernstein & Alexander W. Richter & Nathaniel A. Throckmorton, 2020. "COVID-19: A View from the Labor Market," Working Papers 2010, Federal Reserve Bank of Dallas.
    20. Michael Funke & Raphael Terasa, 2020. "Will Germany's Temporary VAT Tax Rates Cut as Part of the Covid-19 Fiscal Stimulus Package Boost Consumption and Growth?," CESifo Working Paper Series 8765, CESifo.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bfr:bullbf:2021:234:01. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael brassart (email available below). General contact details of provider: https://edirc.repec.org/data/bdfgvfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.