COVID-19 pandemic: overview of the fiscal policy response and macroeconomic developments in the euro area and the United States

Abstract

The COVID-19 pandemic has had a profound impact on the European Union and the United States, with varying waves of severity and divergent progress in vaccination campaigns across regions. To address the short-term costs and potential long-term effects of the crisis, policymakers adopted support measures, particularly fiscal policies. This paper provides an overview of the fiscal support measures implemented, with a focus on the euro area and the United States. It also examines the impact of the pandemic and of support policies on the economies of both regions, as well as the ongoing economic recovery. By analysing the fiscal responses and the macroeconomic developments, this study aims to contribute to a better understanding of the diverse approaches taken by policymakers in combatting the COVID-19 crisis and mitigating its economic consequences.