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dc.titleThe New Fiscal Normal: Vaccinations, Debt, and Fiscal Adjustment in Emerging Economies
dc.contributor.authorValencia, Oscar
dc.contributor.authorArellano, Matheo
dc.contributor.authorAngarita, Matilde
dc.contributor.orgunitFiscal Management Division
dc.coverageLatin America and the Caribbean
dc.date.available2021-09-14T00:00:00
dc.date.issue2021-09-14T00:00:00
dc.description.abstractWhat 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.extent38
dc.identifier.doihttp://dx.doi.org/10.18235/0003617
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-New-Fiscal-Normal-Vaccinations-Debt-and-Fiscal-Adjustment-in-Emerging-Economies.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFiscal Policy
dc.subjectEpidemic
dc.subjectPandemics
dc.subjectCoronavirus
dc.subjectFiscal Consolidation
dc.subjectGross Domestic Product
dc.subjectMacroeconomy
dc.subjectEmerging Market
dc.subject.jelcodeE17 - Forecasting and Simulation: Models and Applications
dc.subject.jelcodeE62 - Fiscal Policy
dc.subject.jelcodeH30 - Fiscal Policies and Behavior of Economic Agents: General
dc.subject.jelcodeH51 - Government Expenditures and Health
dc.subject.jelcodeH60 - National Budget, Deficit, and Debt: General
dc.subject.keywordsEpidemics;macroeconomics;vaccination;vaccination growth multiplier;Fiscal policy
dc.typeDiscussion Papers
idb.identifier.pubnumberIDB-DP-00889
idb.operationRG-E1745
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