(Translated by https://www.hiragana.jp/)
COVID-19 and Public Support for the Euro
IDEAS home Printed from https://ideas.repec.org/p/hhs/lunewp/2023_001.html
   My bibliography  Save this paper

COVID-19 and Public Support for the Euro

Author

Listed:
  • Roth, Felix

    (University of Hamburg)

  • Jonung, Lars

    (Department of Economics, Lund University)

  • Most, Aisada

    (University of Hamburg)

Abstract

The COVID-19 pandemic had disastrous effects on health and economic activity worldwide, including in the Euro Area. The application of mandatory lockdowns contributed to a sharp fall in production and a rise in unemployment, inducing an expansionary fiscal and monetary response. Using a uniquely large macro database, this paper examines the effects of the pandemic and the ensuing economic policies on public support for the common currency, the euro, as measured by the Eurobarometer survey. It finds that public support for the euro reached historically high levels in a majority of the 19 Euro Area member states in the midst of the pandemic. This finding suggests that the expansionary fiscal policies initiated at the EU level significantly contributed to this outcome, while the monetary measures taken by the European Central Bank did not have a similar effect.

Suggested Citation

  • Roth, Felix & Jonung, Lars & Most, Aisada, 2023. "COVID-19 and Public Support for the Euro," Working Papers 2023:1, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2023_001
    as

    Download full text from publisher

    File URL: https://lucris.lub.lu.se/ws/portalfiles/portal/173497835/WP23_1
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Thomas Hale & Noam Angrist & Rafael Goldszmidt & Beatriz Kira & Anna Petherick & Toby Phillips & Samuel Webster & Emily Cameron-Blake & Laura Hallas & Saptarshi Majumdar & Helen Tatlow, 2021. "A global panel database of pandemic policies (Oxford COVID-19 Government Response Tracker)," Nature Human Behaviour, Nature, vol. 5(4), pages 529-538, April.
    2. Felix Roth & Lars Jonung & Felicitas Nowak-Lehmann D., 2022. "Crisis and Public Support for the Euro, 1990–2014," Contributions to Economics, in: Public Support for the Euro, chapter 0, pages 55-91, Springer.
    3. Manfred Gärtner, 1997. "Who wants the euro – and why? Economic explanations of public attitudes towards a single European currency," Public Choice, Springer, vol. 93(3), pages 487-510, December.
    4. ChaeWon Baek & Peter B. McCrory & Todd Messer & Preston Mui, 2021. "Unemployment Effects of Stay-at-Home Orders: Evidence from High-Frequency Claims Data," The Review of Economics and Statistics, MIT Press, vol. 103(5), pages 979-993, December.
    5. Felix Roth & Edgar Baake & Lars Jonung & Felicitas Nowak-Lehmann D., 2022. "Revisiting Public Support for the Euro, 1999–2017: Accounting for the Crisis and the Recovery," Contributions to Economics, in: Public Support for the Euro, chapter 0, pages 21-45, Springer.
    6. Herby, Jonas & Jonung, Lars & Hanke, Steve, 2022. "A Literature Review and Meta-Analysis of the Effects of Lockdowns on COVID-19 Mortality," Studies in Applied Economics 200, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    7. Stock, James H & Watson, Mark W, 1993. "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems," Econometrica, Econometric Society, vol. 61(4), pages 783-820, July.
    8. Walter, Stefanie & Dinas, Elias & Jurado, Ignacio & Konstantinidis, Nikitas, 2018. "Noncooperation by Popular Vote: Expectations, Foreign Intervention, and the Vote in the 2015 Greek Bailout Referendum," International Organization, Cambridge University Press, vol. 72(4), pages 969-994, October.
    9. Michael Lewis-Beck & Mary Stegmaier, 2013. "The VP-function revisited: a survey of the literature on vote and popularity functions after over 40 years," Public Choice, Springer, vol. 157(3), pages 367-385, December.
    10. Joshua Ping Ang & Fang Dong, 2022. "The Effects and Counter-Effects of Unemployment and Stringency Responses to COVID-19: An International Analysis Using Simultaneous Equations Models," Applied Economics, Taylor & Francis Journals, vol. 54(11), pages 1278-1300, March.
    11. Roth, Felix & Jonung, Lars, 2020. "After 25 Years as Faithful Members of the EU. Public Support for the Euro and Trust in the ECB in Austria, Finland and Sweden," Working Papers 2020:19, Lund University, Department of Economics.
    12. Morelli, Pierluigi & Seghezza, Elena, 2021. "Why was the ECB’s reaction to Covid-19 crisis faster than after the 2008 financial crash?," Journal of Policy Modeling, Elsevier, vol. 43(1), pages 1-14.
    13. Hobolt, Sara B. & Wratil, Christopher, 2015. "Public opinion and the crisis: the dynamics of support for the euro," LSE Research Online Documents on Economics 60788, London School of Economics and Political Science, LSE Library.
    14. Anja Bauer & Enzo Weber, 2021. "COVID-19: how much unemployment was caused by the shutdown in Germany?," Applied Economics Letters, Taylor & Francis Journals, vol. 28(12), pages 1053-1058, July.
    15. Andersson, Fredrik N. G. & Jonung, Lars, 2022. "European Stabilization Policy After the Covid-19 Pandemic: More Flexible Integration or More Federalism?," Working Papers 2022:11, Lund University, Department of Economics.
    16. Iain Begg, 2012. "The EU’s response to the global financial crisis and sovereign debt crisis," Asia Europe Journal, Springer, vol. 9(2), pages 107-124, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Felix Roth & Lars Jonung, 2022. "Public Support for the Euro and Trust in the ECB: The First Two Decades of the Common Currency," Contributions to Economics, in: Public Support for the Euro, chapter 0, pages 1-19, Springer.
    2. Felix Roth & Lars Jonung & Felicitas Nowak-Lehmann D., 2022. "Crisis and Public Support for the Euro, 1990–2014," Contributions to Economics, in: Public Support for the Euro, chapter 0, pages 55-91, Springer.
    3. Menna Bizuneh & Steven Buigut & Neven Valev, 2020. "Beyond Borders: The Euro Crisis and Public Support for Monetary Integration in East Africa," South African Journal of Economics, Economic Society of South Africa, vol. 88(4), pages 518-535, December.
    4. Ignacio Jurado & Stefanie Walter & Nikitas Konstantinidis & Elias Dinas, 2020. "Keeping the euro at any cost? Explaining attitudes toward the euro-austerity trade-off in Greece," European Union Politics, , vol. 21(3), pages 383-405, September.
    5. Lucio Baccaro & Björn Bremer & Erik Neimanns, 2021. "Till austerity do us part? A survey experiment on support for the euro in Italy," European Union Politics, , vol. 22(3), pages 401-423, September.
    6. Baccaro, Lucio & Bremer, Björn & Neimanns, Erik, 2020. "Is the euro up for grabs? Evidence from a survey experiment," MPIfG Discussion Paper 20/10, Max Planck Institute for the Study of Societies.
    7. Roth, Felix & Gros, Daniel & Nowak-Lehmann D., Felicitas, 2012. "Has the financial crisis eroded citizens' trust in the European Central Bank? Panel data evidence for the Euro area, 1999-2011," University of Göttingen Working Papers in Economics 124, University of Goettingen, Department of Economics.
    8. Makridis, Christos A., 2022. "When houses of worship go empty: The effects of state restrictions on well-being among religious adherents," European Economic Review, Elsevier, vol. 149(C).
    9. Felix Roth & Edgar Baake & Lars Jonung & Felicitas Nowak-Lehmann D., 2022. "Revisiting Public Support for the Euro, 1999–2017: Accounting for the Crisis and the Recovery," Contributions to Economics, in: Public Support for the Euro, chapter 0, pages 21-45, Springer.
    10. López-Mendoza, Héctor & González-Álvarez, María A. & Montañés, Antonio, 2024. "Assessing the effectiveness of international government responses to the COVID-19 pandemic," Economics & Human Biology, Elsevier, vol. 52(C).
    11. Lee, Sang Yoon(Tim), 2022. "The political economy of early COVID-19 interventions in U.S. states: Comment," Journal of Economic Dynamics and Control, Elsevier, vol. 140(C).
    12. Gonzalez-Eiras, Martín & Niepelt, Dirk, 2022. "The political economy of early COVID-19 interventions in US states," Journal of Economic Dynamics and Control, Elsevier, vol. 140(C).
    13. Roth, Felix & Jonung, Lars, 2020. "After 25 Years as Faithful Members of the EU. Public Support for the Euro and Trust in the ECB in Austria, Finland and Sweden," Working Papers 2020:19, Lund University, Department of Economics.
    14. Lizheng Ma & Congzhi Zhang & Kai Lisa Lo & Xiangyan Meng, 2023. "Can Stringent Government Initiatives Lead to Global Economic Recovery Rapidly during the COVID-19 Epidemic?," IJERPH, MDPI, vol. 20(6), pages 1-16, March.
    15. Moshe Yanovskiy & Yehoshua Socol, 2022. "Are Lockdowns Effective in Managing Pandemics?," IJERPH, MDPI, vol. 19(15), pages 1-12, July.
    16. Thomas Otter, 2013. "Crisis and Trust in National and European Union Institutions — Panel Evidence for the EU, 1999 to 2012," EUI-RSCAS Working Papers 31, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    17. Hideki Nishigaki, 2020. "Coping with Structural Weakness and EMU Citizen Support for the Euro: Opportunities for Change," Economics Bulletin, AccessEcon, vol. 40(4), pages 2755-2768.
    18. Sebastian Blesse & Annika Havlik & Friedrich Heinemann, 2021. "Euro area reform preferences of Central and Eastern European economic experts," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(1), pages 155-179, February.
    19. Gordon Betcherman & Nicholas Giannakopoulos & Ioannis Laliotis & Ioanna Pantelaiou & Mauro Testaverde & Giannis Tzimas, 2023. "The short-term impact of the 2020 pandemic lockdown on employment in Greece," Empirical Economics, Springer, vol. 65(3), pages 1273-1307, September.
    20. repec:got:cegedp:124 is not listed on IDEAS
    21. Grace Armijos-Bravo & Segundo Camino-Mogro, 2023. "Covid-19 Lockdown in Ecuador: Are there Gender Differences in Unemployment?," Journal of Development Studies, Taylor & Francis Journals, vol. 59(6), pages 833-853, June.

    More about this item

    Keywords

    COVID-19; lockdowns; support for the euro; unemployment; inflation; monetary policies; fiscal policies; EU;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:lunewp:2023_001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iker Arregui Alegria (email available below). General contact details of provider: https://edirc.repec.org/data/delunse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.