The Effects of Fiscal Measures during COVID‐19

This paper empirically examines the effects of fiscal measures duringCOVID-19, using a novel database of daily fiscal policy announcements—classified by type of fiscal measure—and high-frequency economic indica-tors for 52 countries from January 1 to December 31, 2020. Results sug-gest that fiscal policy announcements have been effective in stimulatingeconomic activity, boosting confidence, and reducing unemployment, buttheir effect varies by type of measure and country characteristics. Emer-gency lifeline measures are more effective when containment policies arestringent, providing cashflow support to most affected firms and households.Demand support measures are more effective when containment measuresare relaxed.