Scientific Article by professor Djurovic and MPEU members Vasilije Djurovic and Martini Bojaj: The macroeconomic effects of COVID-19 in Montenegro – a Bayesian VARX approach

Scientific Article by professor Djurovic and MPEU members Vasilije Djurovic and Martini Bojaj: The macroeconomic effects of COVID-19 in Montenegro – a Bayesian VARX approach

Scientific Article by Professor Djurovic and our members Vasilije Djurovic and Martini Bojaj is published on the topic of Macroeconomic effects of the COVID-19 pandemic in Montenegro.

The main message of the work is – the key policy is to preserve jobs, because when the coronavirus is brought under control and recovery begins – we need ALL EMPLOYEES to recover the economy!

If you want to read in more detail, please download the article from the site: https://link.springer.com/content/pdf/10.1186/s40854-020-00207-z.pdf

This study examines, diagnoses, and assesses appropriate macroeconomic policy responses of the Montenegrin Government to the outbreak of COVID-19.

They observed what happens to the supply and demand sides, namely, GDP, tourism, capital stock, human capital, health expenditures, economic freedom, and unemployment. The results show a toll on the GDP, tourism, unemployment, capital stock, and especially human capital for 2020. The recommended policy measures are public finance spending initiatives focused on securing employment and keeping highly qualified staff in Montenegrin companies. Considering all uncertainties, the rebound of the Montenegrin economy could take a few years to reach pre-COVID 19 output levels.