Fiscal policy responses at the international level

Abstract

The outbreak of the COVID-19 pandemic has caused a considerable global economic contraction, although the magnitude of the impact has been uneven. However, the response of economic policies to the crisis has been dazzling and of an unprecedented magnitude in the recent past. Overall, the contribution of the discretionary component has been larger in the United States than in the eurozone. While in the United States it could mean an increase in the size of the welfare state, in the eurozone it could represent a significant advance in the construction of the Fiscal Union and in the improvement of economic governance.

Keywords:

COVID-19, tax response, fiscal stimulus

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