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Robust Policy in Times of Pandemic

Author

Listed:
  • Jan Willem Van den End

    (Vrije Universiteit Amsterdam)

  • Yakov Ben-Haim

    (Technion - Israel Institute of Technology)

Abstract

The pandemic exposes policymakers to fundamental uncertainties about future economic scenarios. While policymakers have to act forcefully to mitigate the impact on the economy, these conditions call for policy strategies that are also robust to uncertainty. This article compares two concepts of robust strategies: robust control and robust satisficing. It argues that a robust satisficing strategy is preferred and shows that the crisis responses of governments and central banks in Europe share features of robust satisficing in several dimensions.

Suggested Citation

  • Jan Willem Van den End & Yakov Ben-Haim, 2021. "Robust Policy in Times of Pandemic," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(2), pages 108-112, March.
    • Handle: RePEc:spr:intere:v:56:y:2021:i:2:d:10.1007_s10272-021-0961-1
    DOI: 10.1007/s10272-021-0961-1
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    References listed on IDEAS

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    1. Price Fishback, 2010. "US monetary and fiscal policy in the 1930s," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 26(3), pages 385-413, Autumn.
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    3. Christopher A. Sims, 2001. "Pitfalls of a Minimax Approach to Model Uncertainty," American Economic Review, American Economic Association, vol. 91(2), pages 51-54, May.
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