COVID-19 and fiscal policy in the euro area

Busetto, F., Dufour, A. ORCID: https://orcid.org/0000-0003-0519-648X and Varotto, S. ORCID: https://orcid.org/0000-0001-5328-5327 (2020) COVID-19 and fiscal policy in the euro area. In: Billio, M. and Varotto, S. ORCID: https://orcid.org/0000-0001-5328-5327 (eds.) A New World Post COVID-19 Lessons for Business, the Finance Industry and Policy Makers. Innovation in Business, Economics & Finance (1). Edizioni Ca' Foscari, Venice, Italy, pp. 69-81. ISBN 9788869694424 doi: 10.30687/978-88-6969-442-4/005

Abstract/Summary

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.

Item Type	Book or Report Section
URI	https://reading-clone.eprints-hosting.org/id/eprint/92078
Identification Number/DOI	10.30687/978-88-6969-442-4/005
Refereed	Yes
Divisions	Henley Business School > Finance and Accounting
Uncontrolled Keywords	Fiscal Policy. Debt. COVID-19. Interest Rates. Sovereign Yields.
Publisher	Edizioni Ca' Foscari
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