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Impacto de corto y mediano plazo del COVID-19 en la economía dominicana: un análisis de oferta y demanda agregada
[Short- and medium-term impact of COVID-19 on the Dominican economy: an analysis of aggregate supply and demand]

Author

Listed:
  • Cruz-Rodriguez, Alexis

Abstract

The objective of this article is to illustrate the economic impact of the COVID-19 pandemic on the Dominican economy. To do this, an OA and DA model is developed for the medium term, and an IS-RM model for the short term, within the framework of the new Keynesian economy with monetary policy following a Taylor rule; the money supply is a Phillips curve. The analysis indicates that both in the short and medium term the impact of the coronavirus translates into losses in the level of production, higher levels of unemployment and depreciation of the real exchange rate. The expectations of consumers and entrepreneurs play an important role.

Suggested Citation

  • Cruz-Rodriguez, Alexis, 2021. "Impacto de corto y mediano plazo del COVID-19 en la economía dominicana: un análisis de oferta y demanda agregada [Short- and medium-term impact of COVID-19 on the Dominican economy: an analysis of," MPRA Paper 113292, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:113292
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    File URL: https://mpra.ub.uni-muenchen.de/113292/1/MPRA_paper_113292.pdf
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    References listed on IDEAS

    as
    1. Luca Fornaro & Martin Wolf, 2020. "Covid-19 coronavirus and macroeconomic policy," Economics Working Papers 1713, Department of Economics and Business, Universitat Pompeu Fabra.
    2. David Baqaee & Emmanuel Farhi, 2022. "Supply and Demand in Disaggregated Keynesian Economies with an Application to the COVID-19 Crisis," American Economic Review, American Economic Association, vol. 112(5), pages 1397-1436, May.
    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. David H. Romer, 2000. "Keynesian Macroeconomics without the LM Curve," Journal of Economic Perspectives, American Economic Association, vol. 14(2), pages 149-169, Spring.
    5. R Maria del Rio-Chanona & Penny Mealy & Anton Pichler & François Lafond & J Doyne Farmer, 2020. "Supply and demand shocks in the COVID-19 pandemic: an industry and occupation perspective," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 36(Supplemen), pages 94-137.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    COVID-19; growth; inflation; aggregate demand; aggregate supply;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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