Europe's nations and regions

Ethan Ilzetzki, 28 March 2020

The economic damage from the COVID-19 pandemic is already tangible. In response, fiscal and monetary policies have been introduced by many major economies. This column discusses results from a latest Centre for Macroeconomics survey on the policies best suited for dealing with the economic crisis in the UK. Broad consensus exists on the need to support households and businesses, through unemployment benefits, credit support, and direct transfers. Likewise, a substantial share of economists agree that higher public debt burdens should not be a concern in the process of supporting the economy.

Nicholas Bloom, Philip Bunn, Scarlet Chen, Paul Mizen, Pawel Smietanka, 27 March 2020

The spread of COVID-19 has created an important new source of concern for firms. This column reports the findings of the latest Decision Maker Panel survey of UK CFOs, which show that businesses expected the spread of the virus to have a large impact on their sales over the next year. The impacts on sales were expected to be material across all sectors, but businesses in accommodation and food, leisure and transport services expected to be most severely impacted. The survey also suggests that COVID-19 is now a more important source of uncertainty than Brexit for most UK businesses.

Anniek de Ruijter, Roel Beetsma, Brian Burgoon, Francesco Nicoli, Frank Vandenbroucke, 26 March 2020

An initiative to create centralised control of medical countermeasures at the EU level would solve many coordination issues in times of crisis. However, a unified European response faces a number of legal and political obstacles. This column uses a survey conducted before the COVID-19 outbreak to understand EU citizens’ attitudes towards a joint solidarity programme. It suggests considerable support already exists for an effective policy framework centralising the procurement, stockpiling, and allocation of medicines. 

Beatrice Weder di Mauro, 23 March 2020

How can euro area countries work together to protect their economies? A diverse group of economists has suggested the creation of an emergency Covid credit line. CEPR President Beatrice Weder di Mauro tells Tim Phillips how it would work.

Christian Bayer, Moritz Kuhn, 20 March 2020

There are large differences in case fatality rates from the coronavirus outbreak across countries, from around 6% in Italy to close to zero in some northern European countries (as of 12 March). This column uses World Value Survey data on the share of people aged 30-49 who live with their parents to show that fatality rates are initially higher in countries with more intergenerational interactions. It provides a warning for how important it is for countries where the elderly and the young live close together in particular to try to contain the virus early on.

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