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S6 Ep18: How much inflation did Covid fiscal support cause?

VoxTalks Economics

CHAPTER

The Importance of Fiscal Stimulus

At the time, however, I think there was no doubt that was the right thing to do. The government imposed lockdown policies and people still argue what's the optimal amount of lockdown in terms of economic versus medical hardship trade offs. Now, a question is once the lockdown was lifted in 2021, it was more of a decision making kind of point how much more fiscal stimulus do we need to provide? So 2020 was survival mode. 2021 was a little bit of a fine tuning trying to figure out how can we help people who are still struggling.

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