Economic Activity, Fiscal Space and Types of COVID-19 Containment Measures

Economic Activity, Fiscal Space and Types of COVID-19 Containment Measures
Author :
Publisher : International Monetary Fund
Total Pages : 49
Release :
ISBN-10 : 9781616357214
ISBN-13 : 1616357215
Rating : 4/5 (215 Downloads)

Book Synopsis Economic Activity, Fiscal Space and Types of COVID-19 Containment Measures by : Amr Hosny

Download or read book Economic Activity, Fiscal Space and Types of COVID-19 Containment Measures written by Amr Hosny and published by International Monetary Fund. This book was released on 2022-01-28 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper argues that the type of COVID-19 containment measures affects the trade-offs between infection cases, economic activity and sovereign risk. Using local projection methods and a year and a half of high-frequency daily data covering 44 advanced and emerging economies, we find that smart (e.g. testing) as opposed to physical (e.g. lockdown) measures appear to be best placed to tackle these trade-offs. Initial conditions also matter whereby containment measures can be less disruptive when public health response time is fast and public debt is low. We also construct a database of daily fiscal announcements for Euro area countries, and find that sovereign risk is improved under a combination of large support packages and smart measures.


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