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Expansionary Policy in Pandemics, a Dynamic Model Examination

Author

Listed:
  • Leopoldo Gómez-Ramírez

    (Universidad del Norte, Colombia)

  • Alexander Villarraga-Orjuela

    (Universidad del Norte, Colombia)

Abstract

El objetivo de este artículo es examinar el problema de las polóticas expansivas durante la pandemia en México. Para hacer eso, usamos un modelo dinámico de la interacción entre Covid-19 y la producción económica. Encontramos que las políticas expansivas son deseables pero que, solas, no pueden prevenir la aceleración de la pandemia. También modelamos políticas suplementarias, particularmente de salud pública, y encontramos que en su presencia las políticas económicas expansivas pueden poner a la economía en buen camino mientras que simultáneamente enfrentan a la pandemia. Las implicaciones de nuestro análisis son claras: políticas contracíclicas son deseables cuando existen otras políticas suplementarias. Una limitación de nuestro análisis es que está circunscrito al contexto de la economía mexicana. El artículo es una contribución original en la floreciente literatura sobre Covid-19 en México, porque es el primero que examina formalmente el problema de las políticas expansivas durante la pandemia. Nuestra conclusión es que tanto políticas expansivas como políticas suplementarias son necesarias para lograr una recuperación sostenible.

Suggested Citation

  • Leopoldo Gómez-Ramírez & Alexander Villarraga-Orjuela, 2021. "Expansionary Policy in Pandemics, a Dynamic Model Examination," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 16(3), pages 1-14, Julio - S.
    • Handle: RePEc:imx:journl:v:16:y:2021:i:3:a:2
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    File URL: https://www.remef.org.mx/index.php/remef/article/view/622
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    References listed on IDEAS

    as
    1. Salas, Carlos & Quintana, Luis & Mendoza, Miguel Ángel & Valdivia, Marcos, 2020. "Distribución del ingreso laboral y la pobreza en México durante la pandemia de la Covid-19. Escenarios e impactos potenciales," El Trimestre Económico, Fondo de Cultura Económica, vol. 87(348), pages 929-962, octubre-d.
    2. Jomo Kwame Sundaram, 2020. "Contener el contagio de Covid-19: lecciones comparativas," El Trimestre Económico, Fondo de Cultura Económica, vol. 87(348), pages 1059-1079, octubre-d.
    3. Moreno-Brid, Juan Carlos & Ros, Jaime, 2009. "Development and Growth in the Mexican Economy: An Historical Perspective," OUP Catalogue, Oxford University Press, number 9780195371161.
    4. Francisco Cabrera-Hernández & Marí­a Padilla-Romo, 2020. "Hidden Violence: How COVID-19 School Closures Reduced the Reporting of Child Maltreatment," Working Papers 2020-02, University of Tennessee, Department of Economics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Covid-19; expansionary policies; public health policies; México;
    All these keywords.

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H39 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Other
    • E69 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Other

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