We explore the economic impact of the pandemic and the importance of real and financial sector linkages in this context. We explicitly model the financial sector and trace its role in propagating the pandemic shocks. We find that the pandemic-induced adverse labour supply shock can have sizable...

We examine the impact of the ECB’s Securities Market Program (SMP) and the ECB’s two Covered Bond Purchase Programs (CBPPs) on sovereign bond spreads and covered-bond prices, respectively, for five euro-area stressed countries -- Greece, Ireland, Italy, Portugal, and Spain. Our data are...

We examine real uncertainty (measured by the variability of real growth) and whether it impacts on inflation. Additionally, we investigate whether nominal or real uncertainty impact on growth and, if so, in what direction. The resultsindicate that nominal uncertainty impacted negatively on...