EU’s Ordering of COVID-19 Vaccine Doses: Political Decision-Making under Uncertainty

Abstract

Worldwide, politicians, scientists, and entrepreneurs are operating under high uncertainty and incomplete information regarding the adequacy of measures to deal with the COVID-19 pandemic. It seems indisputable that only widespread and global immunity can bring normalization to social life. In this respect, the development of a vaccine was a milestone in pandemic control. However, within the EU, especially in Germany, the vaccination plan is increasingly faltering, and criticism is growing louder. This paper considers the EU’s political decision in general and the decisions of the German government to procure vaccine doses against the background of modern economics as a decision under uncertainty and critically analyzes the process.

Principles of Monetary and Financial Sustainability and Wellbeing in a post-COVID-19 World: the crisis and its management review

“…policy, since the latter produces apparent expansionary effects only when just a few sectors, companies, and economic agents initially receive the new money, which is accompanied by all of the collateral effects of an increase in inequality in the distribution of income in favor of a small group (as it was mentioned before, this group in connection with the effects of quantitative-easing policies as a determining factor in the enrichment of actors in financial markets). In any case, it is certain that, sooner or later, and to the extent that it is not sterilized by private banks 3 and unmotivated entrepreneurial sectors, the new money will end up reaching the pockets of consumers and generating inflationary pressures, as the Hume effect of an inexorable loss in the purchasing power of the monetary unit appears. And this effect will become increasingly obvious as the initial uncertainty of households is gradually overcome and their members no longer feel the need to maintain such high cash balances or they are simply obliged to spend the money they receive in the form of subsidies to subsist while they are unemployed and unable to produce.…”

“…For instance, new articles and commentaries appearing continually (particularly in salmon-colored newspapers, starting with the Financial Times) invariably tend to reassure markets and send the message that zero (and even negative) interest rates are here to stay for many years to come, because central banks will not deviate from their ultra-lax 3 The relationship between monetary authorities and private banks is "schizophrenic": Monetary authorities flood private banks with liquidity to lend out but constantly threaten to increase their capital requirements and to very closely monitor their choice of borrowers. monetary policies, and thus, investors can relax and continue to get rich by trading in the bond markets.…”

“…The economies affected by an external shock, like a pandemic crisis, they require a preliminary review of conditions and functions according to the Political Economy Principles [1,2]. These economic principles suggest to let the economy in an adaptation process to the new circumstances with less cost (real and opportunity cost) [3]. Once the pandemic has been overcome, it is necessary to promote a healthy and sustainable recovery, also in terms of wellbeing economics [4,5].…”

Principles of Monetary & Financial Sustainability and Wellbeing in a Post-COVID-19 World: The Crisis and Its Management

“…In order to analyze these shocks and mitigate its consequences we must review how economies affected by an external shock, like a pandemic crisis, can recover and which conditions have to be met for this end according to the principles of political economy [1,2]. These economic principles suggest allowing for an adaptation process to the new circumstances with the lowest costs possible [3]. Once the pandemic has been overcome, it is necessary to promote a healthy and sustainable recovery, also in terms of wellbeing economics [4,5].…”

COVID-19: fighting the foe with Virchow

“…Instead of concerted actions on a global scale, most countries first turned to isolationism. A more illustrative example was the provision of COVID-19 vaccines by the European Commission for its member states, which anyhow has been harshly criticized in hindsight for being irresolute, hesitant, and parsimonious [ 7 ].…”