TY - BOOK ID - 138702446 TI - Economic Activity, Fiscal Space and Types of COVID-19 Containment Measures AU - Hosny, Amr. AU - Pallara, Kevin. PY - 2022 SN - 9798400200090 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Argentina KW - Macroeconomics KW - Economics: General KW - Money and Monetary Policy KW - Diseases: Contagious KW - Public Finance KW - Fiscal Policies and Behavior of Economic Agents: General KW - National Government Expenditures and Related Policies: General KW - National Budget, Deficit, and Debt: General KW - Fiscal Policy KW - Market Structure and Pricing: Oligopoly and Other Forms of Market Imperfection KW - Production, Pricing, and Market Structure KW - Size Distribution of Firms KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Health Behavior KW - Debt KW - Debt Management KW - Sovereign Debt KW - Health: General KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Monetary economics KW - Infectious & contagious diseases KW - Public finance & taxation KW - Health economics KW - Fiscal space KW - Fiscal policy KW - Credit default swap KW - Money KW - COVID-19 KW - Health KW - Public debt KW - Currency crises KW - Informal sector KW - Economics KW - Credit KW - Communicable diseases KW - Debts, Public KW - Covid-19 UR - https://www.unicat.be/uniCat?func=search&query=sysid:138702446 AB - This paper argues that the type of COVID-19 containment measures affects the trade-offs between infection cases, economic activity and sovereign risk. Using local projection methods and a year and a half of high-frequency daily data covering 44 advanced and emerging economies, we find that smart (e.g. testing) as opposed to physical (e.g. lockdown) measures appear to be best placed to tackle these trade-offs. Initial conditions also matter whereby containment measures can be less disruptive when public health response time is fast and public debt is low. We also construct a database of daily fiscal announcements for Euro area countries, and find that sovereign risk is improved under a combination of large support packages and smart measures. ER -