Teaching the effect of COVID-19 with a manageable model
Identifieur interne : 000021 ( Main/Exploration ); précédent : 000020; suivant : 000022Teaching the effect of COVID-19 with a manageable model
Auteurs : Sébastien Charles [France] ; Thomas Dallery [France] ; Jonathan Marie [France]Source :
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Abstract
This note has one main ambition. It seeks to provide a very simple macroeconomic framework to explain the economic impact of the COVID-19 pandemic. The explanation for the unprecedented magnitude of the recession over a short span of time is to be found in the peculiar form of the shock due to the various lockdowns involving two recessive shocks simultaneously. Besides, this model is original in that although it is driven by demand it is capable of dealing with supply issues without entailing any additional technical difficulties.
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<front><div type="abstract" xml:lang="en"> <p>This note has one main ambition. It seeks to provide a very simple macroeconomic framework to explain the economic impact of the COVID-19 pandemic. The explanation for the unprecedented magnitude of the recession over a short span of time is to be found in the peculiar form of the shock due to the various lockdowns involving two recessive shocks simultaneously. Besides, this model is original in that although it is driven by demand it is capable of dealing with supply issues without entailing any additional technical difficulties.</p>
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