Modelling the impact of COVID-19 on the UK economy: An application of a disaggregated New-Keynesian model

Summary:

This report by the National Institute of Economic and Social Research sets out a framework that can be used to evaluate policies intended to mitigate the economic effects of Covid-19. The report shows that policies such as the furlough scheme can prevent the sharp rises in unemployment that might arise in the absence of the scheme, and illustrate how such policies can be evaluated using the framework.

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• Opens a new window Modelling the impact of COVID-19 on the UK economy: An application of a disaggregated New-Keynesian model