Publication

The severity of the financial and economic crisis has called for unconventional policy reactions. With monetary policy being constrained by the zero bound limit in late 2008, many industrialized countries have responded to the crisis by launching fiscal stimulus packages of unseen dimensions. Several emerging economies have also implemented packages of substantial size to support the demand side of the domestic and global economy. Even though there is no clear consensus on whether fiscal stimulus is helpful or harmful and how it should be designed, we observe a huge appetite for governmental intervention. This Policy Brief intends to analyze the scope, composition, and timing of fiscal actions taken by over 30 economies worldwide.