COVID-19 Fiscal Support and Its Effectiveness

Alexander Chudik, Kamiar Mohaddes and Mehdi Raissi
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Mehdi Raissi: International Monetary Fund, Washington DC, USA

No 1465, Working Papers from Economic Research Forum

Abstract: This paper uses a threshold-augmented Global VAR model to quantify the macro-economic effects of countries’ discretionary fiscal actions in response to the Covid-19 pandemic and its fallout. Our results are threefold: (1) fiscal policy is playing a key role in mitigating the effects of the pandemic; (2) all else equal, countries that implemented larger fiscal support are expected to experience less output contractions; (3) emerging markets are also benefiting from the synchronized fiscal actions globally through the spillover channel and reduced financial market volatility.

Pages: 14
Date: 2021-03-20, Revised 2021-03-20
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Published by The Economic Research Forum (ERF)

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Related works:
Journal Article: Covid-19 fiscal support and its effectiveness (2021)
Working Paper: Covid-19 Fiscal Support and its Effectiveness (2021)
Working Paper: Covid-19 fiscal support and its effectiveness (2021)
Working Paper: COVID-19 Fiscal Support and Its Effectiveness (2021)
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