TOPIC 1 - The current situation: overview and main features of interest.

Question 1

Shock Covid

Answer 1

It was a major shock to the global economy with severe economic consequences. This resulted in a deep and uneven recession.

Question 2

Shock War

Answer 2

The war between Russia and Ukraine has led to increasing pressure on inflation.

Question 3

Covids impact on trade

Answer 3

The decline in trade was less severe due to:
- Fiscal and monetary policies
- Increases in demand for technology
- Trade police restirants

Question 4

European recovery plan

Answer 4

A plan on how the EU members could recover from Covid shock
- Rapidly bring people back to work
- Minimize the impact of a shortfall in investments
- Compensate for differences in policy impact on member states

Question 5

Covid & impact on EU members

Answer 5

Despite being a symmetric shock, it impacted members differently in regards to:
- The severity of the pandemic
- Lockdowns / Effect of stringency
- Different exposures (ex. size, sectors)
- Availability of fiscal response

Question 6

Covid & Uncertainty

Answer 6

During covid mesures of unceritany (ex. world pandemic uncertainty index & world uncertainty index) reached an all-time high. But this decreased rapidly.

Historiccaly high uncertainty has coincided with periods of lower growth.

Question 7

Covid & Uncertainty

Answer 7

During covid measures of uncertainty (ex. world pandemic uncertainty index & world uncertainty index) reached an all-time high. But this decreased rapidly.

Historically high uncertainty has coincided with periods of lower growth.

Question 8

Banking sector

Answer 8

• EU implemented measures to provide liquidity.
• A ressetion in borrowers

Question 9

Private consumption

Answer 9

• A lower demand
• Increase in savings
  (Due to uncertainty in employment)

Question 10

Business investment

Answer 10

• Decline in investment
• Impact of Covid is easing out

Question 11

Net exports

Answer 11

• EU faces a weakening in foreign demand

Question 12

Labor markets

Answer 12

• Unemployment has increased, but to different extents across EU

Question 13

Trade and GDP

Answer 13

Trade declined 1,5 times more than the decline in output

Question 14

Actions at EU level taken after the pandemic

Answer 14

support scheme, next generation funds 750 billions euro in grants and loans

Question 15

GDP deflator

Answer 15

shows how much change in the base year gdp relies upon changes in the price level

Question 16

ASGR

Answer 16

average simple growth rate, relative change in variable between two periods of time.

Question 17

AACR

Answer 17

Average annual compound rate, growth throughout the period.