V –, U –, L – Or W–Shaped Economic Recovery After COVID-19: Insights From an Agent Based Model

@article{Sharma2020VU,
  title={V –, U –, L – Or W–Shaped Economic Recovery After COVID-19: Insights From an Agent Based Model},
  author={Dhruv Sharma and J. Bouchaud and S. Gualdi and M. Tarzia and F. Zamponi},
  journal={Macroeconomics: Monetary \& Fiscal Policies eJournal},
  year={2020}
}
We discuss the impact of a Covid-like shock on a simple toy economy, described by the Mark-0 Agent-Based Model that we developed and discussed in a series of previous papers. We consider a mixed supply and demand shock, and show that depending on the shock parameters (amplitude and duration), our toy economy can display V-shaped, U-shaped or W-shaped recoveries, and even an L-shaped output curve with permanent output loss. This is due to the existence of a self-sustained "bad" state of the… Expand

References

SHOWING 1-10 OF 72 REFERENCES
Tipping Points in Macroeconomic Agent-Based Models
Monetary Policy and Dark Corners in a Stylized Agent-Based Model
Optimal inflation target: insights from an agent-based model
A Monetary and Fiscal Framework for Economic Stability
The COVID-19 Crisis: Policy Recommendations for Japan
...
1
2
3
4
5
...