Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/262320 
Authors: 
Year of Publication: 
2022
Series/Report no.: 
MAGKS Joint Discussion Paper Series in Economics No. 20-2022
Publisher: 
Philipps-University Marburg, School of Business and Economics, Marburg
Abstract: 
This paper estimates the effects of nine exchange rates for european coun- tries vis-a-vis the Euro in the COVID pandemic. Using data on COVID cases, three containment and two stabilization measures relative to the euro area counterparts, it is shown that a more severe spread of the virus leads to a depreciation of the domestic currency. The same holds with respect to stricter movement restrictions, health care measures and more supportive monetary policies. More expansionary fiscal policies by the domestic country on the other hand lead to an appreciation of the currency. Two extensions show that the results differ with respect to whether the country is a scandinavian or eastern european country and whether the euro area countries or the other european countries introduce the measures.
Subjects: 
Exchange rates
COVID-19
Europe
stabilization policies
containment measures
panel VAR
JEL: 
E44
E52
E62
Document Type: 
Working Paper

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