The proposal of a team around the Leibniz Institute for Financial Research SAFE for a European Pandemic Equity Fund (EPEF) has now been published in the new eBook of the international economic network CEPR (Centre for Economic Policy Research). The team of experts proposed direct money transfers instead of credit financing for firms in difficulties due to the corona crisis.
In two chapters, Arnoud Boot (University of Amsterdam), Elena Carletti (Bocconi University), Hans-Helmut Kotz (Harvard Center for European Studies and SAFE), Jan Pieter Krahnen (SAFE), Loriana Pelizzon (SAFE and Goethe University Frankfurt), and Marti Subrahmanyam (New York University Stern Business School and SAFE) explain how a European Equity Fund can help small and medium-sized enterprises in particular suffering from the corona crisis. Further, the authors specify conditions and principles of this scheme.
In another chapter, SAFE Senior Policy Fellow Ignazio Angeloni argues that banks – the financial oxygen of the economy – should be saved and be supported by adapted banking regulation.
The analyses and policy recommendations of the eBook "Europe in the Time of Covid-19" were published on the online portal VoxEu between the end of March and mid-May. It contains both contributions that have a broad consensus and proposals which are discussed controversially. In addition, the order by date of appearance makes it easy to follow the development of the economic debate.
CEPR eBooks are published on the VoxEU portal since the financial crisis 2008. VoxEu disseminates science-based policy analyses by the world's leading economists.