Global Fiscal Responses to COVID-19

This chapter examines the diverse fiscal responses of countries like the U.S., Japan, and European nations to the economic toll of the coronavirus pandemic. It highlights the challenges posed by the Maastricht Treaty on fiscal policy in Europe and contrasts these with the flexibility seen in the U.S. and Japan. The discussion emphasizes the psychological impacts of the crisis on borrowing behaviors and the potential for uneven economic recovery influenced by historical lessons from past crises.