The Rise in Inequality after Pandemics: Can Fiscal Support Play a Mitigating Role?

Furceri, Davide; Pizzuto, Pietro; Loungani, Prakash; Ostry, Jonathan D.

doi:10.2139/ssrn.4026296

Cited by 11 publications

(17 citation statements)

References 15 publications

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“…12 While inequality slightly increased in 2003 during the SARS pandemic, it did not change during the 2009 H1N1 event (See Figure 1). As previously discussed, recent evidence (Furceri et al, 2021b and, Aguirre andHannan, 2021) show that strong fiscal support and strong initial conditions (defined as low informality, high social protection spending, high health expenditure and high redistribution) contribute to mitigating pandemicinduced inequality. Health spending and social protection spending in Singapore were among the 12 These were short-lived pandemics with significantly less impact than the current COVID-19 pandemic.…”

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confidence: 88%

“…Note however that while public health expenditure is low in Singapore this could be mitigated by the high efficiency in its healthcare system.14 This is a proxy for redistribution widely used in the literature (See for instanceSolt, 2009, 2016, Berg et al, 2018and, Furceri et al, 2021b. This definition of redistribution does not attempt to capture all the effects of government on the income distribution but is a good proxy for cross-country comparison consistently with the literature.…”

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confidence: 94%

“…Initial conditions and policy support shape the impact of pandemics on inequality. Furceri et al (2021b) show that the rise in inequality in the aftermath of major pandemics over the last two decades has been higher in episodes with a lack of fiscal support. The increase in inequality is particularly large in cases with lower fiscal deficits, lower public health expenditures, and lower redistribution, in contrast to cases that did not pursue austerity policies.…”

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confidence: 99%

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Singapore

2022

IMF Staff Country Reports

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Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. In the context of the 2022 Article IV consultation with Singapore, the following documents have been released and are included in this package:• A Press Release summarizing the views of the Executive Board as expressed during its July 15, 2022 consideration of the staff report that concluded the Article IV consultation with Singapore.• The Staff Report prepared by a staff team of the IMF for the Executive Board's consideration on July 15, 2022, following discussions that ended on May 20, 2022, with the officials of Singapore on economic developments and policies. Based on information available at the time of these discussions, the staff report was completed on June 27, 2022.

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Singapore

2022

IMF Staff Country Reports

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Malaysia: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Malaysia

2022

IMF Staff Country Reports

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Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. In the context of the 2022 Article IV consultation with Malaysia, the following documents have been released and are included in this package:• A Press Release summarizing the views of the Executive Board as expressed during its April 6, 2022 consideration of the staff report that concluded the Article IV consultation with Malaysia.• The Staff Report prepared by a staff team of the IMF for the Executive Board's consideration on April 6, 2022, following discussions that ended on February 9, 2022, with the officials of Malaysia on economic developments and policies. Based on information available at the time of these discussions, the staff report was completed on March 7, 2022.• An Informational Annex prepared by the IMF staff.• A Staff Statement updating information on recent developments.

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“…Economic inequality is at peak levels, appears to be rising worldwide, and is particularly acute in the United States (Saez & Zucman, 2016). By most accounts, the current pandemic is likely to exacerbate the situation (Furceri, Loungani, Ostry, & Pizzuto, 2021). The devastating effects of economic inequality are well-documented.…”

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confidence: 99%