Economic policies in a pandemic

Alexei Kireyev () and J. Ferrer
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J. Ferrer: International Monetary Fund, Washington, USA

Journal of the New Economic Association, 2021, vol. 49, issue 1, 185-192

Abstract: What economic policy space does a country have to respond to a crisis provoked by the Covid-19 pandemic? To assess this space, the article calculates the nominal policy space index as a sum of each country's fiscal space, monetary space, and reserve space. This nominal policy space is then adjusted for institutional features of individual countries to derive the effective policy space index. By way of illustration, the article applies the index to the Covid-19 crisis. It finds that at least 95 countries (about 11 percent of global GDP and 23 percent of population) have no or very limited policy space and may require emergency assistance.

Keywords: policy space; fiscal space; debt sustainability; foreign reserves; public debt; market access (search for similar items in EconPapers)
JEL-codes: E61 F01 F42 H12 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:nea:journl:y:2021:i:49:p:185-192

DOI: 10.31737/2221-2264-2021-49-1-8

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