At the moment, measures to prevent the spread of the Coronavirus means the economy is largely at a stand-still. Even if Austria is less affected because it implemented strong measures early on, its economy is strongly intertwined with economies in other countries. Italy, Europe's epicenter of the Coronavirus pandemic, is Austria's second most important trading partner. The USA, Austria's third most important trading partner, is also being affected badly by the virus. Even if countries close their borders right now, the economic consequences are immeasurable.

The president of the extremely influential Kiel Institute for the World Economy, Prof. Gabriel Felbermayr, is advocating Eurobonds ("Coronabonds") to the tune of 1 trillion euros, primarily to support severely affected countries like Italy. Political leaders in Germany and Austria categorically reject this idea. Regardless, Prof. Felbermayr expects that the virus will make us poorer in Germany and Austria.

Prof. Felbermayr is JKU Rector Meinhard Lukas' guest today, together with Prof. Rudolf Winter-Ebmer, head of the Institute of Economics at the Johannes Kepler University and an expert in labor market economics.