Finance & Development - March 2022

Public Finance and Fairness in a Changed World
With the pandemic response, we saw the power and agility of fiscal policy go well beyond what was previously thought possible. Governments channeled cash directly to households and businesses to save jobs and livelihoods. These actions demonstrated government's special role in protecting the vulnerable when things go wrong. Now, however, the bill is coming due. Governments face the tricky task of reducing debt to more sustainable levels while maintaining support for health systems and the most vulnerable. In this issue of F&D, we examine how fiscal policy can be retooled for the post-pandemic world to deliver a balanced economy for all.

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