VoxEU.org -
"The COVID-19 recession differs strongly from past crises in recent history. This column summarises the integration of key economic features of the pandemic into the European Commission's estimated DSGE model. Shock decompositions highlight the dominant role of ‘lockdown shocks' (‘forced savings', labour hoarding) for explaining the quarterly pattern of real GDP growth in 2020, complemented by negative contributions from foreign and investment demand notably in 2020q2 and a negative impact of persistently higher (precautionary) savings. The inflation response has been modest given the severity of the recession."
"The COVID-19 recession differs strongly from past crises in recent history. This column summarises the integration of key economic features of the pandemic into the European Commission's estimated DSGE model. Shock decompositions highlight the dominant role of ‘lockdown shocks' (‘forced savings', labour hoarding) for explaining the quarterly pattern of real GDP growth in 2020, complemented by negative contributions from foreign and investment ...
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