Portugal’s fiscal policy choices during the pandemic: a preliminary evaluation

Paul de Grauwe

No 01/2021, CFP Occasional Papers from Portuguese Public Finance Council

Abstract: In this paper I document the fact that, compared to the other EU-countries, the Portuguese government made relatively cautious budgetary policy choices during the pandemic. Most EU-countries decided to take more expansionary budgetary stances than Portugal. I also find empirical evidence suggesting that countries that used more fiscal stimulus managed to reduce the negative effects of the pandemic on GDP. This raises the question of whether the Portuguese government made the right fiscal policy choice during the pandemic. I argue that other factors than the budgetary policy stance matter in explaining growth performances. In addition, it is probably too early to tell whether the Portuguese government made the right fiscal policy choices.

Keywords: pandemic; fiscal policies; fiscal stance; policy choice (search for similar items in EconPapers)
JEL-codes: E60 E62 E65 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2021-05
New Economics Papers: this item is included in nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:alf:opaper:2021-01

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