No abstract

We build and estimate a structural dynamic life-cycle model of household labor supply, fertility, and consumption behavior. The model features several sources of heterogeneity in household members' characteristics and it incorporates most of the fiscal rules that affect household net income. The parameters of the model are estimated using Italian longitudinal data for the period 2004-12 in order to investigate the causes of the relatively low labor supply by married women in this country. The model matches many characteristics of the data quite well. We use the estimated model to simulate a few counterfactual fiscal and welfare policies: some of them are effective in decreasing poverty rates while increasing labor supply.

We review the debate on the monetary and fiscal policy measures that were adopted in response to the pandemic shock in advanced economies, as well as others that could be taken in the near future, once the health emergency is over. The pandemic is an exceptional global health shock, which has negatively affected the income, liquidity, and financial conditions of households and firms worldwide. Policy responses adopted in advanced economies in 2020based on extraordinary large-scale, swift, targeted monetary and fiscal measures -were appropriate to sustain liquidity, income, and aggregate demand and, thus, helped to avert a devastating financial crisis. Once the health emergency is over, the legacies of the shock will be a recovery of uncertain strength and timing, a low interest rate environment, and high corporate and public debts. Support measures should be removed with caution. A crosscountry coordinated policy mix based on (i) accommodative monetary policies (if consistent with central bank objectives), (ii) public investments and (iii) a gradual rebalancing of government accounts, could be effective in sustaining a strong global recovery and reduce private and public debt.

No abstract

We review the debate on the monetary and fiscal policy measures that were adopted in response to the pandemic shock in advanced economies, as well as others that could be taken in the near future, once the health emergency is over. The pandemic is an exceptional global health shock, which has negatively affected the income, liquidity, and financial conditions of households and firms worldwide. Policy responses adopted in advanced economies in 2020based on extraordinary large-scale, swift, targeted monetary and fiscal measures -were appropriate to sustain liquidity, income, and aggregate demand and, thus, helped to avert a devastating financial crisis. Once the health emergency is over, the legacies of the shock will be a recovery of uncertain strength and timing, a low interest rate environment, and high corporate and public debts. Support measures should be removed with caution. A crosscountry coordinated policy mix based on (i) accommodative monetary policies (if consistent with central bank objectives), (ii) public investments and (iii) a gradual rebalancing of government accounts, could be effective in sustaining a strong global recovery and reduce private and public debt.