Metrics

  • citations in SCIndeks: 0
  • citations in CrossRef:0
  • citations in Google Scholar:[]
  • visits in previous 30 days:12
  • full-text downloads in 30 days:3

Contents

article: 3 from 15  
Back back to result list
2021, vol. 69, iss. 7-8, pp. 460-475
Comparative analysis of the economic policy response to COVID-19 in the EU-27 and Republic of Serbia
aEconomics Institute, Belgrade
bUniversity Singidunum, Belgrade + Institute of Social Sciences, Belgrade
Abstract
In response to the COVID-19 crisis, a wide range of short-term fiscal, monetary and macroprudential measures have been implemented. The aim of this research is to compare the effects of the package of economic measures implemented in the EU-27 countries and the Republic of Serbia in 2020 according to several criteria, starting from factors which had the impact on the amount of economic aid package to assessing short-term effects on economic activity, labour market and public debt. The results of the research showed that the financial value of the economic aid package in 2020 reflects, above all, the economic capacity and relative wealth of the country, rather than the depth of the crisis that the countries faced. A positive interdependence was found between the financial amount of the economic measures package and the amount of public debt as a percentage of GDP, while a negative interdependence was found between the change in unemployment rate and the volume of economic package aid as a share of GDP. Based on the available data, it is still not possible to determine the positive statistical impact of the economic package aid on economic growth. Such findings are also expected because the measures were primarily tailored to preserve the liquidity of the economy and employment. Besides, a certain period of time is needed for the measures to take effect, which may explain the discrepancy between the amount of aid and the depth of economic activity in 2020. The data showed that the Serbian economy, unlike the Eurozone, recorded moderate debt growth and adequate capitalized banking sector is resistant to credit risk growth.
References
Abraham, F., Cortina, J.J., Schmukler, S.L. (2020) Growth of Global Corporate Debt: Main Facts and Policy Challenges. Policy Research Working Paper Series, 9394, http://documents1.worldbank.org/curated/en/570381599749598347/pdf/Growth-of-Global-Corporate-Debt-Main-Facts-and-Policy-Challenges.pdf
Ampudia, M., Kapp, D., Kristiansen, K., Nicolay, C. (2020) Euro area equity markets and shifting expectations for an economic recovery. Economic Bulletin Boxes, 5
Avräƒmescu, T.C. (2020) Assessments on the Effects of the Coronavirus Pandemic on the Economies of the Central and South-East European Union Countries. Ovidius University Annals, Economic Sciences Series, vol. 0(1), pages 105-112, August
Baines, J., Hager, S.B. (2021) The Great Debt Divergence and its Implications for the Covid-19 Crisis: Mapping Corporate Leverage as Power. New Political Economy, 26(5): 885-901, https://www.econstor.eu/bitstream/10419/228533/1/20210000
Banerjee, R., Illes, A., Kharroubi, E., Garralda, J.M.S. (2020) Covid-19 and corporate sector liquidity. BIS Bulletins, 10, https://www.bis.org/publ/bisbull10.pdf
Blanco, R., Mayordomo, S., Menéndez, A., Mulino, M. (2020) The impact of the Covid-19 crisis on the financial position of non-financial corporations in 2020: CBSO-based evidence. Economic Bulletin, issue 4, pages 1-22
Blickle, K.S., Santos, J.A.C. (2020) The Costs of Corporate Debt Overhang Following the COVID-19 Outbreak. Liberty Street Economics, 20201201, https://libertystreeteconomics.newyorkfed.org/2020/12/the-costs-of-corporate-debt-overhang-following-the-covid-19-outbreak.html
Bo, B. (2019) The EU's insolvency reform: Right direction, not enough, and important issues left unaddressed. VoxEU, 27 June
Bo, B., Ulrich, H., Pierre, M.B. (2020) Corporate debt burdens threaten economic recovery after COVID-19: Planning for debt restructuring should start now. in: Europe in the Time of Covid-19, Centre for Economic Policy Research, edition 1, volume 1, chapter 1, pages 34-40
Cevik, S., Miryugin, F. (2020) Leverage Shocks: Firm-Level Evidence on Debt Overhang and Investment. IMF Working Papers, 20(287)
Clemens, M., Gebauer, S., König, T. (2020) European Bank Deposit Insurance Could Cushion Impact of Corona-Induced Corporate Insolvencies. DIW Weekly Report, vol. 10(32/33), pages 325-333. https://www.diw.de/documents/publikationen/73/diw_01.c.795607.de/dwr-20-32-1.pdf
Demmou, L., Calligaris, S., Franco, G., Dlugosch, D., Mcgowan, M.A., Sakha, S. (2021) Insolvency and debt overhang following the COVID-19 outbreak: Assessment of risks and policy responses. in: OECD Economics Department Working Papers, 1651
Ding, W., Levine, R., Lin, C., Xie, W. (2020) Corporate immunity to the COVID-19 pandemic. National Bureau of Economic Research Working Paper, 27055, https://www.nber.org/system/files/working_papers/w27055/w27055.pdf
Elenev, V., Landvoigt, T., van Nieuwerburgh, S. (2020) Can the Covid Bailouts Save the Economy?. C.E.P.R. Discussion Papers, 14714
Eller, M., Reiner, M., Vashold, L. (2021) CESEE's macroprudential policy response in the wake of the COVID-19 crisis. Focus on European Economic Integration, issue Q1/21, pages 55-69
European Central Bank (2020) Bank lending survey. available at: https://www.ecb.europa.eu/stats/ecb_surveys/bank_lending_survey/html/ecb.blssurvey2020q4~e89c77d212.en.html#toc5
European Central Bank (2020) Speech by Philip R. Lane, Member of the Executive Board of the ECB, at the Economics Department and IM-TCD, Trinity College Dublin. link: https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp201126~c5c1036327.en.html
European Commission (2019) Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuri
European Commission (2020) Coordinated economic response to the COVID-19 Outbreak. Available at: https://ec.europa.eu/info/sites/info/files/communication-coordinated-economicresponse-covid19-march-2020_en.pdf
European Commission (2020) Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak. Available at: https://ec.europa.eu/competition/state_aid/what_is_new/sa_covid19_temporaryfra mework.pdf
European Court of Auditors (2020) Review No 06/2020: Risks, challenges and opportunities in the EU's economic policy response to the COVID-19 crisis. link: https://www.eca.europa.eu/en/Pages/DocItem.aspx?did=57497
Friesenhahn, S.M., Kwan, S.H. (2020) Risk of Business Insolvency during Coronavirus Crisis. FRBSF Economic Letter, vol. 2020(30), pages 01-05, October
Holtemöller, O., Muradoglu, Y.G. (2020) Corona shutdown and bankruptcy risk. IWH Online, 3, https://www.econstor.eu/bitstream/10419/219390/1/1701135906.pdf
IMF (2021) Rising corporate market power: Emerging policy issues
Jordà, Ò., Kornejew, M., Schularick, M., Taylor, A.M. (2020) Zombies at Large? Corporate Debt Overhang and the Macroeconomy. Federal Reserve Bank of New York
Kandoussi, M., Langot, F. (2021) On the Heterogeneous Impacts of the COVID-19 Lockdown on US Unemployment. TEPP Working Paper, 2021-01
Keohane, D., Abboud, L. (2020) French economy and the pandemic: It's the calm before the storm. Financial Times, 09 December
Kerbl, S., Steiner, K. (2020) Austrian banks' lending risk appetite in times of expansive monetary policy and tightening capital regulation. Oesterreichische Nationalbank / Austrian Central Bank, Financial Stability Report, issue 39, pages 89-109
Kerstin, B., Clemens, M., Geraldine, D.K., Gebauer, S. (2020) Identifying Effective Combinations of Economic Policy Measures for the Coronavirus Recession in Europe. DIW Weekly Report, vol. 10(23), pages 263-273. https://www.diw.de/documents/publikationen/73/diw_01.c.790938.de/dwr-20-23-1.pdf
Konle-Seidl, R. (2020) Short-time Work in Europe: Rescue in the Current COVID-19 Crisis?. Nuremberg, Germany: Institute for Employment Research, http://doku.iab.de/forschungsbericht/2020/fb0420_en.pdf
Lane, P.R. (2020) Monetary policy in a pandemic: Ensuring favourable financing conditions. Dublin: Trinity College, 26 November
Maurin, L., Pál, R. (2020) Investment vs debt trade-offs in the post-COVID-19 European economy. EIB Working Papers, 09, https://www.econstor.eu/bitstream/10419/226515/1/1739016556.pdf
Mella-Barral, P. (2020) Corporate debt burdens threaten economic recovery after COVID-19: Planning for debt restructuring should start now. VoxEU, 21 March
Mollet, F. (2021) Will corporate debt choke the post-COVID-19 recovery?. Europe's Political Economy Programme, Policy Brief, 25. januar
Radulović, B., Andrić, L. (2017) Nametanje plana reorganizacije nesaglasnoj klasi poverilaca. Pravo i privreda, vol. 55, br. 4-6, str. 202-227
Ramelli, S., Wagner, A.F. (2020) Feverish Stock Price Reactions to COVID-19. C.E.P.R. Discussion Papers, 14511
Ratnovski, L. (2020) COVID-19 and non-performing loans: Lessons from past crises. Research Bulletin, vol. 71. https://www.ecb.europa.eu//pub/economicresearch/resbull/2020/html/ecb.rb200527~3fe17d27d.en.html
Sungmin, A., Kovner, A., Luck, S. (2020) Implications of the COVID-19 Disruption for Corporate Leverage. Liberty Street Economics, 20200810, https://libertystreeteconomics.newyorkfed.org/2020/08/implications-of-the-covid-19-disruption-for-corporate-leverage.html
van der Wielen, W., Barrios, S. (2020) Economic sentiment during the COVID pandemic: Evidence from search behaviour in the EU. JRC Working Papers on Taxation & Structural Reforms, 115: 105970-105970, https://ec.europa.eu/jrc/sites/jrcsh/files/jrc121718.pdf
 

About

article language: English
document type: Review Paper
DOI: 10.5937/EKOPRE2108460N
received: 22/04/2021
published in SCIndeks: 25/02/2022