Uncertainty in the Euro Area During the First Wave of the COVID-19 Pandemic
Uncertainty – a state in which assessing future conditions by economic agents is hampered – rose sharply during the current pandemic. A bout of uncertainty can have similar effects like an adverse demand shock, dampening private consumption, investment and, hence, inflation. According to our own est...| Link(s) zu Dokument(en): | WIFO Publikation |
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| Veröffentlicht in: | WIFO Studies |
| Hauptverfasser: | , |
| Format: | book |
| Sprache: | Englisch |
| Veröffentlicht: |
2020
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| Zusammenfassung: | Uncertainty – a state in which assessing future conditions by economic agents is hampered – rose sharply during the current pandemic. A bout of uncertainty can have similar effects like an adverse demand shock, dampening private consumption, investment and, hence, inflation. According to our own estimations, however, the pandemic-induced spike of uncertainty has caused little macroeconomic damage so far. The introduction of PEPP was a quick and decisive action that stopped uncertainty from rising further and probably contained its adverse economic effects. |
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