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This paper aims to study the inter-sectoral linkages in the Egyptian economy, to increase the efficiency of allocating L.E 100bn fiscal stimulus package (FSP) to tackle the economic fallout from COVID-19 based on the strength of the backward and forward linkages of various sectors, and the values of both employment and value-added multipliers. The paper also measures the impact of the new FSP on the capability of various sectors in creating job opportunities and increasing economic growth.

The paper studies the intersectoral linkages by calculating backward and forward linkages index based on the latest input and output tables available for the Egyptian economy published in 2018. It also depends on a bivariate optimization model to distribute new investments allocated through the FSP based on the values of both employment and value-added multiplier for those sectors. The paper calculated both employment and value-added coefficients to measure the impact of the FSP on creating job opportunities and increasing growth rates.

Based on the results of the empirical analysis, both key sectors (with strong backward and forward linkages) and sectors with strong backward linkages have the highest impact on creating job opportunities and increasing growth rates in the Egyptian economy, which means that allocating FSPs in a way which targets those sectors, especially during economic crisis, could help in increasing the positive impacts of those packages.

The paper is based on the unbalanced growth theory of Hirschman and uses the empirical analysis to study the intersectoral linkages and allocate new investments through FSP through different sectors. The main policy implication of the empirical results of this paper suggests targeting the key sectors and the sectors with strong backward linkages during tough economic times related to COVID-19, to increase the positive impact of the package on the whole economy.

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.

Reviewing a dozen of fiscal stimulus packages in developed countries, this paper analyzes one common strategy that has found widespread support in these stimulus packages and its relevance for developing countries: investing in broadband and next‐generation networks, as a counter‐cyclical tool to create jobs and provide the foundation for economic recovery and long‐term sustained growth.

The paper looks at the various impacts broadband investment is expected to have: short‐term job creation and aggregate demand effects, and long‐term productive activities in other sectors of the economy. Moreover, broadband investment is more fiscally sound than other public spending stimulus options, in the sense of coming closer to, or in some cases actually being, self‐financing.

Several factors highlight the potential of broadband infrastructure as an important area of public investment during economic downturn, an option also open to policymakers in developing countries. Spending initiatives on next‐generation telecommunications networks at a time when labor market conditions are particularly weak can help preserve jobs and head off a potential burden on social safety nets. Bringing forward longer‐term aggregate spillover effects of broadband can improve the productivity of the entire economy and is consistent with enhancing longer‐run growth and development. Public support also “crowds in” private investment when access to private financing is decreasing and more expensive.

This is one of the few studies with a focus on the emerging broadband network, its impact on economy and the role of the public sector in rolling out next‐generation networks, during economic downturn and in general. A detailed summary of broadband initiatives in more than a dozen developed countries is provided in the paper.

During times of economic crises, the public policy response is to abandon basic economic thinking and engage in “emergency economic” policies. We explore how the current financial crisis was in part caused by previous emergency economic measures. We then investigate the theoretical limitations of emergency economic responses. We argue that these responses fail to take into consideration the practical conditions of politics, thereby making them unsuitable to remedy the problems of a crisis. Lastly, we provide a preliminary analysis of the consequences resulting from emergency economic policies initiated in response to the 2008 financial crisis.

Soon after the Lehman crisis, the International Monetary Fund (IMF) surprised its critics with a reconsideration of its research and advice on fiscal policy. The paper traces the influence that the Fund’s senior management and research elite has had on the recalibration of the IMF’s doctrine on fiscal policy. The findings suggest that overall there has been some selective incorporation of unorthodox ideas in the Fund’s fiscal doctrine, while the strong thesis that austerity has expansionary effects has been rejected. Indeed, the Fund’s new orthodoxy is concerned with the recessionary effects of fiscal consolidation and, more recently, endorses calls for a more progressive adjustment of the costs of fiscal sustainability. These changes notwithstanding, the IMF’s adaptive incremental transformation on fiscal policy issues falls short of a paradigm shift and is best conceived of as an important recalibration of the precrisis status quo.