Fiscal responses to the coronavirus pandemic: Next steps

In response to the COVID-19 pandemic, governments have launched massive fiscal and monetary support programs. However, the direct stimulative impact of these fiscal measures is less than the headline figure of more than $8 trillion suggests. The fiscal packages contain many components and while they vary significantly across countries, about half or less of them include increases in government expenditures or a reduction in tax revenues—the rest provide loans or guarantees to firms. As it becomes clear that more fiscal support is needed, future measures should be designed with more thought given to balancing direct measures and guarantees, as well as current consumption and investment in infrastructure. Modernization of infrastructure holds out the promise of improving the productivity of economies, crucial in helping to pay for the huge increase in government debt.

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Πηγή: atlanticcouncil.org