Emergency fiscal programs: no choice but to increase the (monetized) deficits

Amundi
By May 20, 2020 17:15

Emergency fiscal programs: no choice but to increase the (monetized) deficits

The essential

  • The large fiscal packages announced by governments to counter the virus crisis aim, so far, at stabilization more than stimulus.
  • In addition to funding the emergency response to the virus situation itself, these packages intend to prevent a worsening of the crisis through the financial and household income channels.
  • Only part of the amounts recently announced by governments are budgeteasing measures, strictly speaking. Of these, there is a larger push in the US and Japan than in Europe so far
Amundi
By May 20, 2020 17:15

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