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The Effects of Fiscal Measures During COVID-19
Author:
Mr. Pragyan Deb
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,
Davide Furcerinull

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Mr. Jonathan David Ostry
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Nour Tawk
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Naihan Yang
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Series:
IMF Working Papers
Volume/Issue:
Volume 2021: Issue 262
Language:
English
Publication Date:
05 Nov 2021
DOI:
https://doi.org/10.5089/9781557754264.001
ISBN:
9781557754264
ISSN:
1018-5941
Pages:
65
Keywords:
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
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2021: Issue 262