Fighting the COVID-19 Crisis: Debt Monétisation and EU Recovery Bonds

Abstract This paper highlights some peculiar characteristics of the economic crisis induced by the spread of COVID-19. It suggests two intertwined policy measures in order to tackle the emergency phase of the crisis and to support the economy in the subsequent recovery phase. The proposed short-term...

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Main Authors: Alberto Botta, Eugenio Caverzasi, Alberto Russo
Format: Article
Language:English
Published: Sciendo 2020-07-01
Series:Intereconomics
Online Access:https://doi.org/10.1007/s10272-020-0907-z
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author Alberto Botta
Eugenio Caverzasi
Alberto Russo
author_facet Alberto Botta
Eugenio Caverzasi
Alberto Russo
author_sort Alberto Botta
collection DOAJ
description Abstract This paper highlights some peculiar characteristics of the economic crisis induced by the spread of COVID-19. It suggests two intertwined policy measures in order to tackle the emergency phase of the crisis and to support the economy in the subsequent recovery phase. The proposed short-term policy measures offer policy responses in the event of a second wave of coronavirus infections in the coming months. In the aftermath of the emergency phase, the current proposal puts forward the implementation of a massive EU-wide recovery plan addressing the long-lasting technological and environmental challenges of these years, which will be financed by European institutions through the issuance of European Pandemic Recovery Bonds.
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spelling doaj-art-c35e3b2fd4204dc395f585a9c3bdf7042025-08-20T02:18:55ZengSciendoIntereconomics0020-53461613-964X2020-07-0155423924410.1007/s10272-020-0907-zFighting the COVID-19 Crisis: Debt Monétisation and EU Recovery BondsAlberto Botta0Eugenio Caverzasi1Alberto Russo2Dep. of International Business and Economics, Business Faculty, University of Greenwich - Faculty of BusinessDepartment of Economics, Università degli Studi dell’InsubriaDepartment of Economics, Universitat Jaume IAbstract This paper highlights some peculiar characteristics of the economic crisis induced by the spread of COVID-19. It suggests two intertwined policy measures in order to tackle the emergency phase of the crisis and to support the economy in the subsequent recovery phase. The proposed short-term policy measures offer policy responses in the event of a second wave of coronavirus infections in the coming months. In the aftermath of the emergency phase, the current proposal puts forward the implementation of a massive EU-wide recovery plan addressing the long-lasting technological and environmental challenges of these years, which will be financed by European institutions through the issuance of European Pandemic Recovery Bonds.https://doi.org/10.1007/s10272-020-0907-z
spellingShingle Alberto Botta
Eugenio Caverzasi
Alberto Russo
Fighting the COVID-19 Crisis: Debt Monétisation and EU Recovery Bonds
Intereconomics
title Fighting the COVID-19 Crisis: Debt Monétisation and EU Recovery Bonds
title_full Fighting the COVID-19 Crisis: Debt Monétisation and EU Recovery Bonds
title_fullStr Fighting the COVID-19 Crisis: Debt Monétisation and EU Recovery Bonds
title_full_unstemmed Fighting the COVID-19 Crisis: Debt Monétisation and EU Recovery Bonds
title_short Fighting the COVID-19 Crisis: Debt Monétisation and EU Recovery Bonds
title_sort fighting the covid 19 crisis debt monetisation and eu recovery bonds
url https://doi.org/10.1007/s10272-020-0907-z
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AT eugeniocaverzasi fightingthecovid19crisisdebtmonetisationandeurecoverybonds
AT albertorusso fightingthecovid19crisisdebtmonetisationandeurecoverybonds