Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279341 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10590
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Shocks to capital utilization are introduced in a structural macroeconomic closed-economy model with financial frictions to capture disruptions on the ability of the capital stock to provide capital services used in production. Estimates for the Euro Area and the United States show that these shocks were among the most important drivers of the output contraction during the Global Financial Crisis and the COVID-19 Crisis, while financial shocks were more relevant during the Global Financial Crisis. Thanks to the timely and strong intervention of the European Central Bank and the U.S. Federal Reserve, monetary policy shocks exerted a sizable positive contribution to output and inflation during the COVID-19 Crisis.
Subjects: 
Covid-19
Global Financial Crisis
Great Lockdown
monetary policy
capital utilization
JEL: 
E40
E50
E60
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.