Extraordinary Measures: The Role of Debt Levels in Fiscal Policy Responses to Covid-19

We use SVAR models for 18 economies to estimate how much fiscal policy deviated from pre-pandemic norms during the Covid-19 pandemic. For most countries, fiscal policy was more expansive than the pre-pandemic norm predicts based on the state of the economy during the pandemic. The size of the deviation from the pre-pandemic norm is not related to the level of government debt on the eve of the pandemic, as fiscal space concepts would predict.

MoreLess

Year of publication:	2023
Authors:	Elbourne, Adam ; Piccillo, Giulia ; Velentzas, Konstantinos
Publisher:	Munich : Center for Economic Studies and ifo Institute (CESifo)
Subject:	Covid-19 \| fiscal policy \| SVAR \| fiscal space

More details

Series:	CESifo Working Paper ; 10852
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1877362557 [GVK] hdl:10419/282540 [Handle] RePec:ces:ceswps:_10852 [RePEc]
Classification:	E60 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook. General ; H50 - National Government Expenditures and Related Policies. General ; C50 - Econometric Modeling. General
Source:	EconStor

Persistent link: https://www.econbiz.de/10014469485