Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2023:1: COVID-19 and Public Support for the Euro

Felix Roth (), Lars Jonung () and Aisada Most
Additional contact information
Felix Roth: University of Hamburg
Lars Jonung: Department of Economics, Lund University, Postal: School of Economics and Management, Box 7080, S-220 07 Lund, Sweden
Aisada Most: University of Hamburg

Abstract: The COVID-19 pandemic had disastrous effects on health and economic activity worldwide, including in the Euro Area. The application of mandatory lockdowns contributed to a sharp fall in production and a rise in unemployment, inducing an expansionary fiscal and monetary response. Using a uniquely large macro database, this paper examines the effects of the pandemic and the ensuing economic policies on public support for the common currency, the euro, as measured by the Eurobarometer survey. It finds that public support for the euro reached historically high levels in a majority of the 19 Euro Area member states in the midst of the pandemic. This finding suggests that the expansionary fiscal policies initiated at the EU level significantly contributed to this outcome, while the monetary measures taken by the European Central Bank did not have a similar effect.

Keywords: COVID-19; lockdowns; support for the euro; unemployment; inflation; monetary policies; fiscal policies; EU

JEL-codes: C23; E24; E42; E52; E62; I18

Language: English

41 pages, February 6, 2023

Full text files

WP23_1 PDF-file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Prakriti Thami ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-03-11 10:26:11.