The Effects of Fiscal Measures During COVID-19

The Effects of Fiscal Measures During COVID-19
READ MORE...
Volume/Issue: Volume 2021 Issue 262
Publication date: November 2021
ISBN: 9781557754264
$5.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
paperback else
pdf else
epub else
English
Prices in red indicate formats that are not yet available but are forthcoming.
Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Labor , Economics- Macroeconomics , Public Finance , Economics / General , Industries- General , Fiscal policy , COVID-19 , multipliers , high-frequency data , , fiscal policy announcement , containment policy , demand-support measure , emergency lifeline , industrial production , Industrial production , Unemployment rate , Fiscal stimulus , Global

Summary

This paper empirically examines the effects of fiscal policy measures during the COVID-19 pandemic, using a novel database of daily fiscal policy announcements—classified by type of fiscal measure—and high-frequency economic indicators for 52 countries from January 1 to December 31, 2020. The results suggest that fiscal policy announcements have been effective in stimulating economic activity, boosting confidence, and reducing unemployment, but their effect varies by type of measure and country characteristics. Emergency lifeline measures (which form the bulk of below-the-line measures) are more effective when containment policies are stringent, providing cashflow support to firms and households. Demand-support measures (which comprise most of above-the-line measures) are more effective when containment measures are relaxed.