ABSTRACT

Fiscal Policy and Recovery from the COVID-19 Recession [Updated July 23, 2020]   [open pdf - 1MB]

From the Summary: "The economic contraction that began in February 2020 differs from previous contractions, including the Great Depression of the 1930s and the Great Recession of 2007-2009. It was caused in large part by concerns about the spread of the Coronavirus Disease 2019 (COVID-19) and government policies aimed at limiting person-to-person contact. The health concerns of the public and the stay-at-home and shutdown orders designed to limit contact reduced cash flow to businesses and increased the number of unemployed workers. Fiscal policy during the current contraction, recovery, and beyond may take two forms: (1)fiscal policy designed to prevent business failures and sustain the unemployed during the initial pronounced contraction; and (2)fiscal policy used during a traditional recession and recovery aimed at stimulating aggregate demand in general and restoring full employment. Some data, such as rises in reported case numbers in certain areas, suggest that parts of the economy are still in the grip of the pandemic."

Report Number:
CRS Report for Congress, R46460
Author:
Publisher:
Date:
2020-07-23
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
Help with citations