Working Paper: CEPR ID: DP17879
Authors: Divya Kirti; Yang Liu; Maria Soledad Martinez Peria; Prachi Mishra; Jan Strask
Abstract: We introduce an announcement-level database tracking the fiscal, monetary, and prudential policies adopted in response to Covid-19. The database—organized for easy use—provides information for 28 granular policies adopted by 74 countries during 2020. About 5,500 policies were announced during this period. Announcements were highly correlated across the broad fiscal, monetary, and prudential categories and at more granular levels. Advanced economies (AEs) introduced larger fiscal measures than emerging and developing economies (EMDEs) and relied primarily on large unconventional monetary policies. Bank capital requirements, supervisory expectations, and reporting requirements were widely relaxed. Provisioning requirements were mainly loosened among EMDEs.
Keywords: monetary policy; fiscal policy; macroprudential policy; COVID-19
JEL Codes: E52; E58; G21; G28; L38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| economic status of a country (O57) | magnitude of fiscal responses (E62) |
| economic context of the country (E66) | type of monetary policy (E63) |
| announcements of fiscal, monetary, and prudential policies (E60) | simultaneous implementation of different types of policies (D78) |