The governments worldwide which put extensive rescue packages in place when the COVID-19 crisis hit their economies are now facing the tough decision of whether to further extend their massive bailouts of labour markets and businesses or to let end dates stand. Fiscal ‘cliff edges’ are emerging across the globe as these support programmes approach their expiries.
The dilemma policymakers must contend with is if they ought to keep pumping cash into their economies with the intention of driving a rebound from the recession. The risks of any continuation are that the longer the extended support lasts, the larger budget deficits will grow and the more delay there will be to a return to business as normal. The Washington Post has the key dates to watch for the Group of Seven economies and further analysis from Bloomberg Economics.
The governments worldwide which put extensive rescue packages in place when the COVID-19 crisis hit their economies are now facing the tough decision of whether to further extend their massive bailouts of labour markets and businesses or to let end dates stand. Fiscal ‘cliff edges’ are emerging across the globe as these support programmes approach their expiries.
The dilemma policymakers must contend with is if they ought to keep pumping cash into their economies with the intention of driving a rebound from the recession. The risks of any continuation are that the longer the extended support lasts, the larger budget deficits will grow and the more delay there will be to a return to business as normal. The Washington Post has the key dates to watch for the Group of Seven economies and further analysis from Bloomberg Economics.