Spillover Effects of the COVID-19 American Rescue Plan
In this video, Corrado discusses the impact the $1.9tn American Rescue plan is expected to have on inflation, as well as how the emerging market will be affected.
Overview
The stimulus could add around 3 percentage points to US GDP growth this year and 1 percentage point to global GDP growth, including spillovers from trade. However, results also support the idea that the size of the fiscal stimulus could lead to an increase in inflation and inflation expectations.
Key learning objectives:
What will the effect of the American Rescue Plan have on inflation?
What are the financial spillovers to emerging markets?
What are the financial spillover impacts of the American Rescue Plan around the world?
Summary
Expert
Corrado Macchiarelli
Dr. Corrado Macchiarelli is the global macroeconomics research manager in the macroeconomic modeling and forecasting team at NIESR (National Institute of Economic and Social Research). He is also the managing editor of the National Institute Economic Review (Cambridge University Press).
