Abstract
What economic policy space does a country have to respond to a crisis provoked by the Covid-19 pandemic? To assess this space, the article calculates the nominal policy space index as a sum of each country’s fiscal space, monetary space, and reserve space. This nominal policy space is then adjusted for institutional features of individual countries to derive the effective policy space index. By way of illustration, the article applies the index to the Covid-19 crisis. It finds that at least 95 countries (about 11 percent of global GDP and 23 percent of population) have no or very limited policy space and may require emergency assistance.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
