Working paper
Description

Abstract:

This paper uses a threshold-augmented Global VAR model to quantify the macroeconomic effects of countries’ discretionary fiscal actions in response to the COVID-19 pandemic and its fallout. The 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 synchronised fiscal actions globally through the spillover channel and reduced financial market volatility.

Publication Details
License type:
All Rights Reserved
Access Rights Type:
open
Issue:
CAMA Working Paper 28/2021