EconPol/Intereconomics Session on Fiscal Stimulus, CEPS Ideas Lab
Fiscal Stimulus: Lessons from the US to Europe
In order to mitigate the impact of the coronavirus pandemic, most G20 member countries have committed to fiscal stimulus packages. While deficits in the European Union are about 7 percent of its gross domestic product (GDP) and a large share of it reflects automatic stabilizers, the United States passed two fiscal stimulus packages and authorized additional aid that amounts to approximately 5 trillion Dollars. Fiscal deficits are estimated to be around 18 percentage points of GDP in 2020 and 2021. Even though the EU-wide fiscal stimulus plan that included borrowing 750 billion Euros (892 billion dollars) from public markets is unprecedented, the money might not be available to member states before the second half of 2021. Critics argue that this is too little too late and that measures are not targeted enough to boost consumption. On the other hand, there are voices reminding that ‘the bigger they are the harder they fall’: the enormous US relief package could lead to a spike in inflation and threaten long-term financial stability.
In this panel Antonia Díaz, Daniel Gros, Alfred Kammer, Adam Posen and Claudia Sahm will discuss if, and what lessons the EU can learn from the US in terms of fiscal policy measures to fight the coronavirus pandemic – or vice versa. The session is part of the prestigious "CEPS Ideas Lab" and is hosted by Intereconomics and EconPol Europe.
Antonia Díaz (Professor - Carlos III University of Madrid and EconPol Europe)
Daniel Gros (Distinguished Fellow - CEPS Brussels and EconPol Europe)
Alfred Kammer (Director - European Department, International Monetary Fund)
Adam Posen (President - Peterson Institute for International Economics)
Claudia Sahm (Senior Fellow - Jain Family Institute, formerly Federal Reserve Board )
The event will be moderated by Christian Breuer (Head of Wirtschaftsdienst and Intereconomics, Leibniz Information Centre for Economics)