{
  "title": "The Effects of Fiscal Measures During COVID-19",
  "publication": "IMF Working Papers, November 5, 2021",
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  "summary": "This paper empirically examines the effects of fiscal policy measures during the COVID-19 pandemic, using a novel database of daily fiscal policy announcements—classified by type of fiscal measure—and high-frequency economic indicators for 52 countries from January 1 to December 31, 2020.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Paper objective: Empirically examine the effects of fiscal policy measures during the COVID-19 pandemic.\n- Scope: 52 countries, January 1 to December 31, 2020.\n- Core approach: Novel database of daily fiscal policy announcements—classified by type of fiscal measure—combined with high-frequency economic indicators."
    },
    {
      "heading": "Key findings",
      "content": "- Fiscal policy announcements have been effective in:\n  - Stimulating economic activity.\n  - Boosting confidence.\n  - Reducing unemployment.\n- Effect heterogeneity:\n  - Emergency lifeline measures (which form the bulk of below-the-line measures) are more effective when containment policies are stringent, by providing cashflow support to firms and households.\n  - Demand-support measures (which comprise most of above-the-line measures) are more effective when containment measures are relaxed."
    },
    {
      "heading": "Methodology and data",
      "content": "- Data sources:\n  - Novel database of daily fiscal policy announcements, classified by type of fiscal measure.\n  - High-frequency economic indicators covering industrial production, labor, production, unemployment rate, and confidence measures.\n- Coverage period: January 1 to December 31, 2020.\n- Country coverage: 52 countries."
    },
    {
      "heading": "Policy implications and interpretation",
      "content": "- Tailor fiscal measures to public-health containment context:\n  - Use emergency lifeline (below-the-line) measures to support cashflow for firms and households when containment policies are stringent.\n  - Employ demand-support (above-the-line) measures when containment measures are relaxed to maximize effectiveness in stimulating demand.\n- Recognize heterogeneity across countries: policy design should account for country characteristics that influence fiscal measure effectiveness."
    },
    {
      "heading": "Keywords and subject tags",
      "content": "- Subject: COVID-19, Fiscal policy, Fiscal stimulus, Health, Industrial production, Labor, Production, Unemployment rate\n- Keywords: containment policy, COVID-19, demand-support measure, emergency lifeline, Fiscal policy, fiscal policy announcement, Fiscal stimulus, Global, high-frequency data., industrial production, Industrial production, multipliers, Unemployment rate\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2021/11/05/the-effects-of-fiscal-measures-during-covid-19-504347"
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    "Authors: Pragyan Deb, Davide Furceri, Jonathan David Ostry, Nour Tawk, Naihan Yang",
    "Published: November 5, 2021",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781557754264.001",
    "Paper objective: Empirically examine the effects of fiscal policy measures during the COVID-19 pandemic.",
    "Scope: 52 countries, January 1 to December 31, 2020.",
    "Core approach: Novel database of daily fiscal policy announcements—classified by type of fiscal measure—combined with high-frequency economic indicators.",
    "Fiscal policy announcements have been effective in:",
    "Effect heterogeneity:",
    "Data sources:",
    "Coverage period: January 1 to December 31, 2020.",
    "Country coverage: 52 countries.",
    "Tailor fiscal measures to public-health containment context:",
    "Recognize heterogeneity across countries: policy design should account for country characteristics that influence fiscal measure effectiveness.",
    "Subject: COVID-19, Fiscal policy, Fiscal stimulus, Health, Industrial production, Labor, Production, Unemployment rate",
    "Keywords: containment policy, COVID-19, demand-support measure, emergency lifeline, Fiscal policy, fiscal policy announcement, Fiscal stimulus, Global, high-frequency data., industrial production, Industrial production, multipliers, Unemployment rate",
    "**Working Paper**"
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