Teaching the effect of COVID-19 with a manageable model

Sébastien Charles (1) , Thomas Dallery (2) , Jonathan Marie (3)

1 LED - Laboratoire d'Economie Dionysien
2 CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019
3 CEPN - Centre d'Economie de l'Université Paris Nord

This note has one main ambition. It seeks to provide a very simple macroeconomic framework to explain the economic impact of the COVID-19 pandemic. The explanation for the unprecedented magnitude of the recession over a short span of time is to be found in the peculiar form of the shock due to the various lockdowns involving two recessive shocks simultaneously. Besides, this model is original in that although it is driven by demand it is capable of dealing with supply issues without entailing any additional technical difficulties.

Mots clés: COVID-19; lockdown; recession; simultaneous shocks

Domaines: Economies et finances

Sébastien Charles, Thomas Dallery, Jonathan Marie. Teaching the effect of COVID-19 with a manageable model. 2020. ⟨hal-02610519⟩