Introduction
Richard Baldwin and Beatrice Weder di MauroBox 3 Examples of possible policy measures
Below is a selection of measures directed at stimulating incomes and confidence
and alleviating liquidity crunches. Some of them have already been implemented,
mostly in the ground zero of Asia and in Italy.Targeted measures: Healthcare/confidence
Pay bonus for health care workers (Singapore)
One-month salary donated by political leadership in solidarity (Singapore)
Provide a small amount of face masks to all households (and discourage them from
using them as long as they are healthy) (Singapore)
Targeted fiscal measures: Households
Cash payout to every citizen above 18 years of age of more than US$1,000
(Hong Kong)
Suspension of payments for electricity in affected areas (Italy)
Support for uninsured households for medical expenses
Targeted measures: Firms
Subsidised short-term employment schemes for (Germany)
Accelerated depreciation for firms (Germany)
Sector-specific financial support for tourism, accommodation and aviation
(Singapore)
Broad-based financial help for businesses, including enhanced absentee payroll
support for workers (Singapore)
Reduction in profit tax and low interest loans for small and medium-sized firms
(Hong Kong)
Targeted measures: Monetary/banking
Targeted liquidity provision bank funding conditioned on bank lending to small
(ECB, TLTROs)
Liquidity support to banks
General fiscal stimulus package, large and coordinated at G20/EU level
Emergency tax reductions
Suspension of payments of social security
Increase spending
Relax fiscal criteria for affected countries in the EU
General monetary stimulus package, coordinated at G20
Cut rates (Fed, Bank of Canada, etc.)
Quantitative Easing