Economic and Fiscal Effects of COVID-19 Pandemic: An Evaluation of Selected Countries

Abstract

Purpose: COVID-19 pandemic is among the most important events of the 21st Century. Its global character and the multi-dimensional fallouts it has on communities worldwide further increase the importance of the pandemic. During the period of more than one year since the declaration of the pandemic, the communities failed to provide a lasting solution other than the face masks, social distance, and hygiene. Failure to fight the pandemic with considerable success subsequently raised the topic of revising the policymakers’ previous predictions at the start of the pandemic based on incomplete information. So, the calendar put forward for the pandemic went forward day by day, and the authorities who failed to adopt a prudent approach were obliged to pay increasingly higher costs for their mistakes. In the chapter, the financial and economic effects of the pandemic in selected countries are examined. While examining the policies followed in these countries, in terms of fiscal stimulus packages and monetary expansion packages, it is aimed to shed light on the pandemic experience in the Turkish economy and to develop policy recommendations. Thus the persistence of the pandemic pushes all countries to update their current policies and seek new methods. This chapter aims to examine developed and emerging economies in the covid-19 era that have implemented policies to struggle with the pandemic and whose policy framework can be accessed.

Methodology: To do this we carried out a literature review of the Economic and Fiscal Effects of COVID-19 Pandemic during 2020 and early 2021.

Findings: Countries like the United States, United Kingdom, and Germany are believed to have taken strong measures to minimize the damages on the economy due to the pandemic, while other countries like Russia, India, and Brazil are deemed to have mounded new policies within the framework of their internal dynamics. One should also note that, in addition to the individual efforts of each European country, the European Union has also played a decisive role in the policies of its member states for crisis management institutionally.

Citation

Mecik, O., Bahtiyar, E. and Karabacak, M. (2022), "Economic and Fiscal Effects of COVID-19 Pandemic: An Evaluation of Selected Countries", Grima, S., Özen, E. and Romānova, I. (Ed.) Managing Risk and Decision Making in Times of Economic Distress, Part A (Contemporary Studies in Economic and Financial Analysis, Vol. 108A), Emerald Publishing Limited, Leeds, pp. 195-214. https://doi.org/10.1108/S1569-37592022000108A041