Euro Area, U.K. Got Bang for Their Coronavirus Stimulus Billions

(Bloomberg) -- A Bloomberg Economics model of fiscal and monetary interaction in four big advanced economies during the pandemic shows fiscal policy had a material impact, especially in the U.K and the euro area, where it was generally both timely and well targeted.It looks somewhat less so in the U.S., where it was uncertain how long support would last and the distribution of some funds was held up. In Japan, there were snags in the rollout and fiscal multipliers are traditionally thought to be low and BE’s analysis supports that view. The key lesson for governments to learn from their handling of the first phase of the crisis -- be nimble, go all in.

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