COVID-19 and Emerging Markets: An Epidemiological Model with International Production Networks and Capital Flows
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Summary:
We quantify the macroeconomic effects of COVID-19 for a small open economy by calibrating a SIR-multi-sector-macro model. We measure sectoral supply shocks utilizing teleworking and physical job proximity, and demand shocks with credit card purchases. Both shocks are also affected from changing infection rates under different lockdown scenarios. Being an open economy amplifies the economic costs through two main channels. First, the demand shock has domestic and external components. Second, the initial shock is magnified due to domestic and international input-output linkages.
Series:
Working Paper No. 2020/133
Subject:
COVID-19 Demand elasticity Economic theory External debt Health Labor Monetary policy Population and demographics Unconventional monetary policies
Frequency:
regular
English
Publication Date:
July 17, 2020
ISBN/ISSN:
9781513550183/1018-5941
Stock No:
WPIEA2020133
Pages:
74
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