The Roaring Twenties after Covid-19: revisiting the evidence for Europe

Inspired by conspicuous historical parallels, some scholars and journalists have recently postulated that GDP growth productivity might boom in the aftermath of Covid-19 pandemic. This paper reviews evidence for against ‘Roaring 20s’ hypothesis, concluding countries experience a forceful economic expansion, possibly fuelled pent-up demand, compounding successful digital green transition, or leveraging an export-led model. However, strong prolonged bonanza is unlikely to materialise evenly across EU. An uneven recovery would acquiesce imbalances within Union, especially euro area. As such, policymakers should avoid complacency, make most Recovery Resilience Facility funds, combining them with wide-reaching structural reforms, improve prospects decade come.