An Analysis of COVID-19 Fiscal Policies in the US and Japan

Abstract

In 2020, the COVID-19 disease created an unprecedented impact on the world. It created a health crisis in many countries, causing a pandemic. Along with the health crisis, most countries fell into an immediate economic recession including the US and Japan. This paper focuses on the fiscal policies used in the US and Japan due to the COVID-19 pandemic-related economic recession in both countries. First, a detailed analysis of the US and Japanese fiscal policies is presented, analyzing their effectiveness. Subsequently, these policies were compared and contrasted to obtain a better understanding of fiscal responses around the world. Overall, this paper aims to provide a new global perspective on the implementation of fiscal policies while also aiding policy-makers in making more educated decisions for future recessions caused by COVID-19 or other pandemics.