Covid-19 Economic Recovery: Fiscal Stimulus Choices for Lower-Income Countries
Iain Steel and Tom Harris : 2020
In the initial crisis phase of the Covid-19 pandemic, as countries used lockdowns to suppress the spread of the virus, fiscal support measures were introduced to help businesses and households keep their heads above water. As certain countries begin to control the spread of Covid-19 and lift lockdowns, some are likely to consider using fiscal stimulus to restore output lost due to the pandemic. This paper explores the challenges and constraints around such stimulus measures in lower-income countries, and in the context of a global pandemic, and puts forward tax, transfer and other government spending options that offer potential for success.