Home > Catalogue > Innovation in Business, Economics & Finance > A New World Post COVID-19 > COVID-19 and Fiscal Policy in the Euro Area
cover
cover

COVID-19 and Fiscal Policy in the Euro Area

F. Busetto    ICMA Centre, Henley Business School, University of Reading, UK; European Central Bank

Alfonso Dufour    ICMA Centre, Henley Business School, University of Reading, UK    

Simone Varotto    ICMA Centre, Henley Business School, University of Reading, UK    

VIEW PDF DOWNLOAD PDF

abstract

In this chapter we document fiscal policy developments in the main euro area economies over the last two decades and highlight the dramatic changes triggered by the COVID-19 pandemic. We analyse how euro area yield curves respond to COVID-19 related expectations of fiscal expansion. We show how fiscal constraints may affect interest rates. Upward pressure on national yields from higher debt levels could compromise fiscal and financial stability in the long-term.

Published
July 31, 2020
Accepted
June 30, 2020
Submitted
June 3, 2020
Language
EN
ISBN (EBOOK)
978-88-6969-442-4

Keywords: Fiscal PolicyCOVID-19DebtInterest RatesSovereign Yields

Copyright: © 2020 F. Busetto, Alfonso Dufour, Simone Varotto. This is an open-access work distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction is permitted, provided that the original author(s) and the copyright owner(s) are credited and that the original publication is cited, in accordance with accepted academic practice. The license allows for commercial use. No use, distribution or reproduction is permitted which does not comply with these terms.