Main conditioning factors of fiscal and monetary policies in the post-COVID-19 era

The second chapter of this edition of the Economic Study is divided into three sections. The first describes the environment of greater financial vulnerability in which the world and the region will find themselves once the coronavirus disease (COVID-19) pandemic has abated, as well as the financial scenario in which the eventual global and regional economic recovery is expected to take place. The crisis unleashed by the COVID-19 pandemic erupted in a global economy characterized by record levels of debt, which had reached over 320% of global GDP by the end of 2019. The effects of the COVID-19 crisis on global liquidity, coupled with the fiscal packages implemented by governments, will fuel further borrowing in the world economy.

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