Fiscal Impacts of COVID-19

The COVID-19 pandemic has led to unprecedented fiscal actions in many nations, as governments have increased spending and provided tax relief to firms and households during a period of economic shutdown. Even after the pandemic recedes, its fiscal effects will continue, since most countries will face higher debt burdens as a result of their expansionary fiscal policies and the path of economic activity will take time to return to its pre-pandemic track. Gita Gopinath, the Economic Counsellor and Director of the Research Department of the International Monetary Fund, on leave from her role as an NBER research associate, summarized the fiscal impact of COVID-19 on both developed and developing nations in a plenary address at the NBER's Tax Policy and the Economy meeting in late September. Her presentation may be viewed in the video below.

Four NBER working papers distributed this week investigate the COVID-19 pandemic, its economic effects, and public health and economic responses to it. One study analyzes the rise of precautionary saving in the early months of the pandemic (27964). A second explores how various local attributes, such as occupational mix and the degree of income inequality, affected the spread of the virus (27965). A third study describes new challenges that the pandemic poses for emerging markets (27966). The last new paper analyzes survey data from 15 countries and finds that respondents are prepared to trade off some civil liberties during the COVID-19 crisis in return for more favorable public health outcomes (27972).

More than 280 NBER working papers have presented pandemic-related research. These papers are open access and have been collected for easy reference. Like all NBER papers, they are circulated for discussion and comment, and have not been peer-reviewed. More than 280 NBER working papers have presented pandemic-related research. These papers are open access and have been collected for easy reference. Like all NBER papers, they are circulated for discussion and comment, and have not been peer-reviewed. They may be viewed in reverse chronological order or by topic area.