Fiscal and monetary responses to the COVID-19 pandemic: Some thoughts for developing countries and the international community
These historically unprecedented times require unconventional responses. Yes, there are several examples of countries that in the past have abused “unconventional monetary approaches,” leading to high bouts of inflation, strong devaluations, balance of payment crises, and corruption. Yet, with prude...
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| Formato: | Capítulo de libro |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2020
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| Acceso en línea: | https://hdl.handle.net/10568/143163 |
| _version_ | 1855532381157457920 |
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| author | Díaz-Bonilla, Eugenio |
| author_browse | Díaz-Bonilla, Eugenio |
| author_facet | Díaz-Bonilla, Eugenio |
| author_sort | Díaz-Bonilla, Eugenio |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | These historically unprecedented times require unconventional responses. Yes, there are several examples of countries that in the past have abused “unconventional monetary approaches,” leading to high bouts of inflation, strong devaluations, balance of payment crises, and corruption. Yet, with prudence, these approaches should now be used to finance specific public expenditures, such as cash transfers and safety nets for the poor and vulnerable, and certain public investments, and to keep firms operating. In any case, money always enters into the economy through specific actors (at present, mainly the owners of the assets being bought by the central banks), and not by equally endowing each citizen with the same amount of currency (as in Milton Friedman’s parable of “helicopter money”; Friedman 1969). A universal income would do the latter, and some of the recent rescue packages in developed countries moved in that direction. The methods suggested here would ultimately make the channels through which an expanded money supply gets into the economy more democratic. |
| format | Book Chapter |
| id | CGSpace143163 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1431632025-11-06T04:11:24Z Fiscal and monetary responses to the COVID-19 pandemic: Some thoughts for developing countries and the international community Díaz-Bonilla, Eugenio supply balance covid-19 services economic crises international organizations products developing countries food security currencies These historically unprecedented times require unconventional responses. Yes, there are several examples of countries that in the past have abused “unconventional monetary approaches,” leading to high bouts of inflation, strong devaluations, balance of payment crises, and corruption. Yet, with prudence, these approaches should now be used to finance specific public expenditures, such as cash transfers and safety nets for the poor and vulnerable, and certain public investments, and to keep firms operating. In any case, money always enters into the economy through specific actors (at present, mainly the owners of the assets being bought by the central banks), and not by equally endowing each citizen with the same amount of currency (as in Milton Friedman’s parable of “helicopter money”; Friedman 1969). A universal income would do the latter, and some of the recent rescue packages in developed countries moved in that direction. The methods suggested here would ultimately make the channels through which an expanded money supply gets into the economy more democratic. 2020-06-01 2024-05-22T12:12:18Z 2024-05-22T12:12:18Z Book Chapter https://hdl.handle.net/10568/143163 en https://doi.org/10.2499/p15738coll2.133762 https://www.ifpri.org/blog/fiscal-and-monetary-responses-covid-19-pandemic-some-thoughts-developing-countries-and https://www.clarin.com/opinion/oficina-guerra-plan-integral_0_14VO-Ls4q.html Open Access application/pdf International Food Policy Research Institute Diaz-Bonilla, Eugenio. 2020. Fiscal and monetary responses to the COVID-19 pandemic: Some thoughts for developing countries and the international community. In COVID-19 and global food security, eds. Johan Swinnen and John McDermott. Part Seven: Policy responses, Chapter 22, Pp. 98-101. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.133762_22. |
| spellingShingle | supply balance covid-19 services economic crises international organizations products developing countries food security currencies Díaz-Bonilla, Eugenio Fiscal and monetary responses to the COVID-19 pandemic: Some thoughts for developing countries and the international community |
| title | Fiscal and monetary responses to the COVID-19 pandemic: Some thoughts for developing countries and the international community |
| title_full | Fiscal and monetary responses to the COVID-19 pandemic: Some thoughts for developing countries and the international community |
| title_fullStr | Fiscal and monetary responses to the COVID-19 pandemic: Some thoughts for developing countries and the international community |
| title_full_unstemmed | Fiscal and monetary responses to the COVID-19 pandemic: Some thoughts for developing countries and the international community |
| title_short | Fiscal and monetary responses to the COVID-19 pandemic: Some thoughts for developing countries and the international community |
| title_sort | fiscal and monetary responses to the covid 19 pandemic some thoughts for developing countries and the international community |
| topic | supply balance covid-19 services economic crises international organizations products developing countries food security currencies |
| url | https://hdl.handle.net/10568/143163 |
| work_keys_str_mv | AT diazbonillaeugenio fiscalandmonetaryresponsestothecovid19pandemicsomethoughtsfordevelopingcountriesandtheinternationalcommunity |