The risks of exiting too early the policy responses to the COVID-19 recession
Cassola, N., De Grauwe, P.
, Morana, C. & Tirelli, P.
(2022).
The risks of exiting too early the policy responses to the COVID-19 recession.
Research in Globalization,
4,
https://doi.org/10.1016/j.resglo.2021.100073
, Morana, C. & Tirelli, P.
(2022).
The risks of exiting too early the policy responses to the COVID-19 recession.
Research in Globalization,
4,
https://doi.org/10.1016/j.resglo.2021.100073
This policy brief warns about the risks of discontinuing the policy responses to the COVID-19 crisis by pursuing exit strategies too early and/or too sharply. It outlines a comprehensive strategy for limiting such risks globally and offers an in-depth discussion of the European situation. Due to fiscal rules written in a pre- COVID-19 era and excessive emphasis on controlling public debt ratios, the Euro Area could be left with long-lasting scars, so its situation requires special treatment. Therefore, we articulate some policy proposals designed to preserve and strengthen the recovery in the EMU.
