We embed an extension of the canonical epidemiology model in a New Keynesian model with uninsurable income risk. In our framework, two factors contribute to making consumption less sensitive to real interest rate changes in a pandemic. First, individuals are less willing to take advantage of...

We present a Simple SIR Macro Model to study the economic impact of an epidemic in a model were agent types are unobservable. We solve for the decentralized economy equilibrium and for optimal solution (subject to the constraint that the planner cannot differentiate between agent types). We find...

Although China's adherence to its longstanding zero-COVID strategy has been praised for its success in saving lives especially during the peak of the global pandemic in late 2020 and early 2021, its downsides have recently become increasingly apparent. Despite preventive measures at all levels,...