| Authors |
Pappa, E., Ramos, A. and Vella, E. |
| Title |
Which crisis support fiscal measures worked during the COVID-19 shock in Europe? |
| Abstract |
We build a new database by classifying the COVID-19 fiscal measures for twelve EU countries into seven spending categories and examine how the different support packages affected the economy. On average, fiscal measures supported the output recovery without generating significant inflationary pressures. This finding masks substantial heterogeneity: Assistance to small and medium enterprises and specific sectors contributed significantly to stimulating the economy and to maintaining inflation. Direct pandemic spending and unemployment benefits and measures to sustain employment levels generated sizeable output multipliers and had no inflationary costs. Conversely, universal help only had positive effects on inflation and transfers to households did not do much apart from affecting confidence. |
| Creation Date |
2022-07-01 |
| Keywords |
COVID-19 crisis, fiscal measures, multipliers, sentiment, transfers, assistance to SMEs, inflation |
| Classification JEL |
C23, E62 |
| File |
2022.FISCAL_COVID.pdf (961657 bytes) |
| File-Function |
First version |
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