Segnalazione da ECB Research Bulletin: “How has the U.S. coronavirus aid package affected household spending?”

 (...)  the latest issue (No. 75) of the ECB Research Bulletin, entitled “How has the U.S. coronavirus aid package affected household spending?”

Christopher D. Carroll (Johns Hopkins University), Edmund Crawley (Federal Reserve Board), Jiri Slacalek (Monetary Policy Research Division, European Central Bank) and Matthew N. White (University of Delaware) model the spending and saving behaviour of households during the coronavirus (COVID-19) pandemic, differentiating between the employed, temporarily unemployed and persistently unemployed, and examine how the CARES Act should affect this behaviour. They estimate that, in the case of a short-lived lockdown (which was the median point of view in April 2020), the CARES Act should be sufficient to allow a swift recovery in consumer spending to its pre-crisis levels. For a longer-lasting lockdown (if there is a “second wave” of the virus), an extension of enhanced unemployment benefits is likely to be necessary for consumption spending to recover quickly.

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