03 Mar 2021

Adjusting Support in a K-Shaped Recovery

Daniel Gros / Farzaneh Shamsfakhr

0
Download Publication

46 Downloads

As recovery from the pandemic continues, fiscal and monetary support can be reduced, at least for industry. Cliff effects are unlikely to arise under a gradual reduction of support. With financial markets in a “risk on” phase, monetary policy support becomes less relevant. The withdrawal of the various pandemic measures should not pose a risk to the recovery or to financial stability.

This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON), ahead of the Monetary Dialogue with the ECB President on 18 March 2021.

Related Publications

Browse through the list of related publications.

The European added value of the Recovery and Resilience Facility

An assessment of the Austrian, Belgian and German plans

Where the (euro) buck stops

Facing the next big crisis with a better EU budget

The Next Revision of the Financial Regulation and the EU Budget Galaxy

How to safeguard and strengthen budgetary principles and parliamentary oversight

Optimal tariff versus optimal sanction

The case of European gas imports from Russia

Comparing and assessing recovery and resilience plans – Second edition

Italy, Germany, Spain, France, Portugal, Slovakia, Austria and Belgium

When the taps are turned off

How to get Europe through the next winter without Russian gas