Spending Responses News Today

Similar to many other government policies around the world, Germany's fiscal response to the Covid-19 pandemic included direct fiscal transfers to households. This column evaluates the spending effects of three payments to families with children and their effectiveness. It finds a significant but small spending effect of the first transfer which is higher for low-income and

New research shows that few people spent their economic impact payments in the early days of the pandemic. Those who did spend really needed the money.