Coronavirus: from health crisis to economic crisis

How is the coronavirus pandemic affecting the economy? Which sectors have been hit hardest? What is the ECB doing to limit the economic impact of the crisis? Our host Michael Steen discusses these questions with ECB Chief Economist Philip R. Lane.

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

Published on 18 May 2020; recorded on 11 May 2020.

In this episode:

(02:30) Coronavirus and the economy

The economic impact of the coronavirus pandemic, the characteristics of the shock on the supply and demand sides and which sectors have been hit the hardest by the crisis.

(08:11) Coronavirus and the policy response

The need to address the dramatic downturn in the economy that is threatening price stability, how we are supporting households and firms and why fiscal policy has to play a central role.

(15:18) The risk of falling prices and targeted lending

How the pandemic pushes prices down in the short and medium-term and how our targeted measures incentivise banks to continue lending to small and medium-sized businesses and households in these uncertain times.

The ECB’s response to the coronavirus pandemic

https://www.ecb.europa.eu/home/search/coronavirus/html/index.en.html

https://www.bankingsupervision.europa.eu/home/search/coronavirus/html/index.en.html

Philip R. Lane: Interview with the Telegraaf

https://www.ecb.europa.eu/press/inter/date/2020/html/ecb.in200512~13fcf73079.en.html

Philip R. Lane: The monetary policy response to the pandemic emergency

https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200501~a2d8f514a0.en.html

ECB announces new pandemic emergency longer-term refinancing operations

https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200430_1~477f400e39.en.html

ECB recalibrates targeted lending operations to further support real economy

https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200430~fa46f38486.en.html

Luis de Guindos, Isabel Schnabel: Improving funding conditions for the real economy during the COVID-19 crisis: the ECB’s collateral easing measures

https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200422~244d933f86.en.html

Fabio Panetta: Why we all need a joint European fiscal response

https://www.ecb.europa.eu/press/inter/date/2020/html/ecb.in200421~a7f2ec5159.en.html

Christine Lagarde: How the ECB is helping firms and households

https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200409~3aa2815720.en.html

Luis de Guindos, Isabel Schnabel: The ECB’s commercial paper purchases: A targeted response to the economic disturbances caused by COVID-19

https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200403~54ecc5988b.en.html

Christine Lagarde: Our response to the coronavirus emergency

https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200319~11f421e25e.en.html

ECB announces €750 billion Pandemic Emergency Purchase Programme (PEPP)

https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200318_1~3949d6f266.en.html

ECB statement

https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200318~152e1c740f.en.html

Philip R. Lane: The Monetary Policy Package: An Analytical Framework

https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200313~9e783ea567.en.html

ECB announces easing of conditions for targeted longer-term refinancing operations (TLTRO III)

https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200312_1~39db50b717.en.html

ECB announces measures to support bank liquidity conditions and money market activity

https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200312_2~06c32dabd1.en.html

European Central Bank website

https://www.ecb.europa.eu/