The corona virus outburst was declared a global pandemic in March 2020, making many countries to go on lockdown in order to try to restrain it and avoid or dimmish the overwhelming of national health systems. As work and studies went online and social distancing became a safety rule, social...

We simulate the fiscal stimulus packages set up by the German government to allevi-ate the costs of the COVID-19 pandemic in a dynamic New Keynesian multi-sectorgeneral equilibrium model. We find that, cumulated over 2020-2022, output lossesrelative to steady state can be reduced by more than 4...