Author Archives: Menzie Chinn

A Literature Review on Economic Policy Response to Covid-19

An excellent review of empirical findings regarding the various provisions is contained in this FEDS Notes article, by Elena Falcettoni, and Vegard Nygaard.

The COVID-19 pandemic has kept economists busy analyzing many aspects of economic side of the coronavirus impact. This note is meant to present an overview of what economists have analyzed regarding the implications of two of the main components of the CARES Act that affect individuals: the increased UI benefits and the stimulus checks. We present the findings from the literature on these two policies with an eye on potential future governmental interventions.

Taken together, these two components have been effective at providing stimulus and lowering poverty. In the aggregate,?Kaplan et al. (2020) (PDF)?find that the initial UI benefits and stimulus payments boosted aggregate consumption by 2 percentage points, while?Bayer et al. (2020)?show that the CARES transfers reduced the output loss due to the pandemic by up to 5 percentage points.

Complete note here.


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Per James Hamilton and Menzie Chinn

Guest Contribution: “Central Bank Digital Currency: Some Macro-Financial Implications”

Today we are pleased to present a guest contribution written by Hongyi Chen, Senior Advisor at the Hong Kong Institute for Monetary and Financial Research, and?Pierre Siklos, Professor of Economics at Wilfrid Laurier University. The views expressed here are their own and do not reflect the official opinions of Hong Kong Institute for Monetary and Financial Research or any other institutions the authors are affiliated with.


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On the Consequences of Inflammatory Language Use on Social Media

Remember assertions that the use of the term “China Virus” in the stead of SARS-CoV-2 or Covid-19 was not only appropriate, but desirable? From Time:

Since the start of the pandemic last spring, Asian Americans have faced racist violence at a much higher rate than previous years. The NYPD reported that hate crimes motivated by anti-Asian sentiment jumped 1,900% in New York City in 2020. Stop AAPI Hate, a reporting database created at the beginning of the pandemic as a response to the increase in racial? violence, received 2,808 reports of anti-Asian discrimination between March 19 and? December 31, 2020. The violence has continued into 2021, and President Joe Biden signed an? executive order denouncing anti-Asian discrimination shortly after taking office in January. While anti-Asian violence has taken place nationwide and particularly in major cities, the uptick in attacks in 2021 has been particularly focused in the Bay Area, especially in San Francisco and Oakland’s Chinatowns.

Well, Steven Kopits, the Asian-American community of America thanks you.

See also WaPo.