Monetary and fiscal policies in the United States

Abstract

This chapter on the economic, budgetary and monetary policy measures adopted by the French authorities makes a comparison with the subprime crisis, and shows that the main measures may differ across regions. Unlike the Asian countries, France, like its European neighbors, experienced strong tensions in its healthcare system leading to two successive lockdowns (March to May 2020;and October to December 2020). In order to deal with the ensuing economic crisis, the government implemented an emergency plan of €470bn followed by a recovery plan of €100bn euros, and by new financial measures (PLFR4) in November 2020. The overall cost of the Covid-19 crisis for the 2020 public finances is estimated at €186bn, and the emergency measures have an impact of around €86bn on the 2020 public balance. Consequently, the economy experienced a debt growing from 98 to about 120 percent of GDP in 2021. In the near future, it is necessary that the situation of the French economy improves rapidly in order to limit both the social impact of the crisis and its effects on France’s steadily deteriorating financial situation over the last few decades. © 2022 selection and editorial matter, Bernadette Andreosso-O’Callaghan, Woosik Moon and Wook Sohn;individual chapters, the contributors.