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| dc.title | The New Fiscal Normal: Vaccinations, Debt, and Fiscal Adjustment in Emerging Economies |
| dc.contributor.author | Valencia, Oscar |
| dc.contributor.author | Arellano, Matheo |
| dc.contributor.author | Angarita, Matilde |
| dc.contributor.orgunit | Fiscal Management Division |
| dc.coverage | Latin America and the Caribbean |
| dc.date.available | 2021-09-14T00:00:00 |
| dc.date.issue | 2021-09-14T00:00:00 |
| dc.description.abstract | What is the potential impact of vaccination programs and different fiscal adjustment scenarios on countries after suffering the macro-fiscal effects of the pandemic? We calibrate a DSGE model with an epidemiological module for the average Latin American and Caribbean economy that uses fiscal policy and vaccination to contain these effects. We find that there is a trade-off in the application of one of these policies. Focusing on vaccination has a high return in saving lives and improving economic growth but a lower fiscal adjustment. We conclude that simultaneous vaccination and fiscal reform is a successful policy combination that helps countries mitigate the health effects of the pandemic, reduce the economic cost of fiscal policy, and move toward a path of fiscal consolidation. |
| dc.format.extent | 38 |
| dc.identifier.doi | http://dx.doi.org/10.18235/0003617 |
| dc.identifier.url | https://publications.iadb.org/publications/english/document/The-New-Fiscal-Normal-Vaccinations-Debt-and-Fiscal-Adjustment-in-Emerging-Economies.pdf |
| dc.language.iso | en |
| dc.medium | Adobe PDF |
| dc.publisher | Inter-American Development Bank |
| dc.subject | Fiscal Policy |
| dc.subject | Epidemic |
| dc.subject | Pandemics |
| dc.subject | Coronavirus |
| dc.subject | Fiscal Consolidation |
| dc.subject | Gross Domestic Product |
| dc.subject | Macroeconomy |
| dc.subject | Emerging Market |
| dc.subject.jelcode | E17 - Forecasting and Simulation: Models and Applications |
| dc.subject.jelcode | E62 - Fiscal Policy |
| dc.subject.jelcode | H30 - Fiscal Policies and Behavior of Economic Agents: General |
| dc.subject.jelcode | H51 - Government Expenditures and Health |
| dc.subject.jelcode | H60 - National Budget, Deficit, and Debt: General |
| dc.subject.keywords | Epidemics;macroeconomics;vaccination;vaccination growth multiplier;Fiscal policy |
| dc.type | Discussion Papers |
| idb.identifier.pubnumber | IDB-DP-00889 |
| idb.operation | RG-E1745 |