Fiscal Policy in the Age of COVID-19: Does It “Get in All of the Cracks”?

Pierre-Olivier Gourinchas, Şebnem Kalemli-Özcan, Veronika Penciakova & Nicholas Sander
The COVID-19 pandemic caused an uncommon recession that required uniquely large and often novel fiscal responses. Government-imposed lockdowns created severe supply bottlenecks in some sectors of the economy, and physical distancing led to dramatic changes in patterns of consumer spending. Some sectors of the economy—such as online retail—benefited, while many others—such as restaurants and travel—struggled to deal with losses of customers and the constraints of lockdowns and remote work. In reaction to this, many governments...
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