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Monetary policy implications of the COVID-19 outbreak, the social pandemic

Author

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  • Roedl, Marianne
  • Dupont, Genevieve

Abstract

Whilst the magnitude and consequences of the outbreak can certainly not be compensated – at least for many, or even quantified, it is hoped that greater cooperation between global economies, will be fostered in the ongoing efforts to find a solution to address the outbreak. This paper is aimed at contributing to the literature on a topic on which previous literature, at least prior to December 12 2019, practically and literally, in respect of COVID-19, did not exist. Many major economies and global economies have extended shut downs from excluding essential workers, to 80-90% of its citizens being ordered to stay at home Whilst it is certainly crucial to ensure that the outbreak is contained, it appears that certain economies, given uncertainties associated with the nature, scope of recent developments, are willing to take risks at salvaging their economies. At what stage does a government decide that prevailing restrictive social distancing measures should be relaxed? What are possible mental, long term consequences associated with, and attributable to a protracted economic shut down? What options exist for monetary policy and central banks in particular, given less options available amidst historically low interest rate levels? These constitute some of the questions which this paper aims to address.

Suggested Citation

  • Roedl, Marianne & Dupont, Genevieve, 2020. "Monetary policy implications of the COVID-19 outbreak, the social pandemic," MPRA Paper 99981, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:99981
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    File URL: https://mpra.ub.uni-muenchen.de/99981/1/MPRA_paper_99981.pdf
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    References listed on IDEAS

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    1. repec:zbw:bofrdp:2019_012 is not listed on IDEAS
    2. Luís Aguiar-Conraria & Manuel M. F. Martins & Maria Joana Soares, 2019. "The Phillips Curve at 60: time for time and frequency," CEF.UP Working Papers 1902, Universidade do Porto, Faculdade de Economia do Porto.
    3. Berge, Travis J., 2018. "Understanding survey-based inflation expectations," International Journal of Forecasting, Elsevier, vol. 34(4), pages 788-801.
    4. James H. Stock & Mark W. Watson, 2007. "Why Has U.S. Inflation Become Harder to Forecast?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(s1), pages 3-33, February.
    5. repec:zbw:bofrdp:2020_004 is not listed on IDEAS
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    Cited by:

    1. Emilie Jasova & Bozena Kaderabkova, 2022. "The effectiveness of government measures in the first wave of Covid-19 pandemic," International Journal of Economic Sciences, European Research Center, vol. 11(1), pages 19-36, April.

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    More about this item

    Keywords

    digital currency; interest rates; consumer spending; investor confidence; global markets; new Keynesian Philips Curve;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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