COVID-19: OMT is second-best, but still welcome
| Authors |
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| Publication date | 05-04-2020 |
| Publisher | VoxEU |
| Organisations |
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| Abstract | The emergency measures in place to absorb the COVID-19 shock need to be supplemented by OMT unless leaders agree to create a euro area safe asset and fiscal capacity. This column employs an empirically calibrated model to show that OMT is second-best to the creation of a safe asset and fiscal capacity at the centre, but would still be a powerful means to mitigate the economic impact of the crisis. |
| Document type | Web publication or website |
| Language | English |
| Published at | https://voxeu.org/article/covid-19-omt-second-best-still-welcome |
| Downloads |
COVID-19 OMT is second-best, but still welcome VOX, CEPR Policy Portal
(Final published version)
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| Permalink to this page | |
