Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261811 
Year of Publication: 
2020
Series/Report no.: 
Economic Memo No. 10
Publisher: 
Danmarks Nationalbank, Copenhagen
Abstract: 
This economic memo isolates two channels through which the "corona shock" affects the economy: a fall in asset prices and an increase in the dispersion of future shocks to the economy. Both shocks are contractionary, but they operate through different channels. A CCyB that is reactivated early reduces the impact of an asset price shock the most. In contrast, a CCyB that is reactivated late reduces the impact of a volatility shock the most.
Document Type: 
Research Report

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