Vinci, Francesca; Licandro, Omar - 2021
We propose a theoretical framework to reconcile episodes of V-shaped and L-shaped recovery, encompassing the behaviour … counterbalance the shocks, preventing the destruction of economic capacity and inducing a V-shaped recovery. However, when shocks are …, the so-called switching-track, weakening the recovering role of monetary policy and inducing an L-shaped recovery. When …