A pandemia de Covid-19 e a política fiscal: o que há de novo na visão do mainstream?

Norberto Montani Martins; Maria Isabel Busato

Fiscal policy and the Covid-19 pandemics: What’s new in the mainstream view?

Authors

Norberto Montani Martins Instituto de Economia, Universidade Federal do Rio de Janeiro, Rio de Janeiro, RJ, Brasil. https://orcid.org/0000-0002-9101-3135
Maria Isabel Busato Instituto de Economia, Universidade Federal do Rio de Janeiro, Rio de Janeiro, RJ, Brasil. https://orcid.org/0000-0002-6684-1318

Abstract

In this paper we map the debates on fiscal policy in the Economics mainstream that resulted from the Covid-19 crisis. We present the discussions around the following topics: (a) fiscal policy in a context of low interest rates; (b) the metrics for assessing the fiscal situation of a jurisdiction; (c) alternative fiscal frameworks such as semi-autonomous discretionary fiscal architecture or fiscal standards; and (d) the fiscal agenda in the most recent International Monetary Fund (IMF) publications. We argue that the acceptance of fiscal expansions in contexts of low interest rates – especially those focused on public investments that do not generate current expenditures – and the adoption of greater flexibility in the framework of fiscal rules in central countries reappear as important elements in the “new” framework of the mainstream. However, as far as developing economies are concerned, fiscalism persists and the “old convictions remain rooted” in the mainstream view.

Keywords: Covid-19; fiscal policy; fiscal rules; new fiscal consensus.

JEL Codes: E62; H50; H60.

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Published

2023-07-25

How to Cite

MARTINS, N. M.; BUSATO, M. I. Fiscal policy and the Covid-19 pandemics: What’s new in the mainstream view?. Nova Economia, [S. l.], v. 33, n. 1, p. 95–119, 2023. Disponível em: https://revistas.face.ufmg.br/index.php/novaeconomia/article/view/7378. Acesso em: 17 jul. 2024.

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Issue

Vol. 33 No. 1 (2023): Revista Nova Economia

Section

Regular Issue

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