ABSTRACT

Fiscal Policy and Recovery from the COVID-19 Recession [Updated July 31, 2020]   [open pdf - 1MB]

From the Introduction: "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. [...] This report provides an overview of the state of the economy and summarizes the fiscal measures already taken in response to the current downturn. Many of these responses have largely been aimed at providing economic relief. In the future, policymakers may consider more traditional fiscal policies designed to boost aggregate demand. This report then discusses fiscal policy used during more traditional recessions and recovery, both the theory and empirical evidence, and reviews what types of fiscal policy are likely to be most effective during recovery from a recession. The report concludes with a brief discussion of the pandemic's effect on the debt."

Report Number:
CRS Report for Congress, R46460
Author:
Publisher:
Date:
2020-07-31
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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