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COVID-19 in Uruguay: A survey of policy responses and their impact

Author

Listed:
  • Elizabeth Bucacos

    (Banco Central del Uruguay)

  • Patricia Carballo

    (Banco Central del Uruguay)

  • Miguel Mello

    (Banco Central del Uruguay)

  • Jorge Ponce

    (Banco Central del Uruguay)

Abstract

COVID-19 implied an overwhelming shock with large economic consequences. In this paper, we provide an evaluation of the impact of the social, economic, and financial policy measures undertaken to ameliorate its negative consequences in Uruguay. We start by surveying the immediate impact of the shock and the main policy responses. Next, we take a threefold approach to evaluate their impact on GDP, inflation, inflation expectations, investment, consumption, hours worked and firms’ financing. The results show that the policy response had a significant effect on mitigating the negative impact of the pandemic.

Suggested Citation

  • Elizabeth Bucacos & Patricia Carballo & Miguel Mello & Jorge Ponce, 2022. "COVID-19 in Uruguay: A survey of policy responses and their impact," Documentos de trabajo 2022002, Banco Central del Uruguay.
    • Handle: RePEc:bku:doctra:2022002
    as

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    File URL: https://www.bcu.gub.uy/Estadisticas-e-Indicadores/Documentos%20de%20Trabajo/2.2022.pdf
    File Function: First version, 2022
    Download Restriction: no
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    References listed on IDEAS

    as
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    2. William A. Branch, 2004. "The Theory of Rationally Heterogeneous Expectations: Evidence from Survey Data on Inflation Expectations," Economic Journal, Royal Economic Society, vol. 114(497), pages 592-621, July.
    3. Patricia Carballo & José Ignacio González & Margarita Güenaga & José Mourelle & Gabriela Romaniello, 2015. "Un modelo semi estructural de proyecciones macroeconómicas para el Uruguay," Documentos de trabajo 2015012, Banco Central del Uruguay.
    4. Kremer, Manfred & Lo Duca, Marco & Holló, Dániel, 2012. "CISS - a composite indicator of systemic stress in the financial system," Working Paper Series 1426, European Central Bank.
    5. Jan Hatzius & Peter Hooper & Frederic S. Mishkin & Kermit L. Schoenholtz & Mark W. Watson, 2010. "Financial Conditions Indexes: A Fresh Look after the Financial Crisis," NBER Working Papers 16150, National Bureau of Economic Research, Inc.
    6. repec:ecb:ecbwps:20111426 is not listed on IDEAS
    7. Kevin L. Kliesen & Michael T. Owyang & E. Katarina Vermann, 2012. "Disentangling diverse measures: a survey of financial stress indexes," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 369-398.
    8. María Victoria Landaberry, 2017. "Indicadores de estabilidad financiera: un nuevo índice para el sector financiero," Documentos de trabajo 2017010, Banco Central del Uruguay.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Bucacos, Elizabeth & Carballo, Patricia & Mello, Miguel & Ponce, Jorge, 2023. "Policy responses to COVID-19 in Uruguay," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 4(2).
    2. Emilio Espino & Julian Kozlowski & Fernando M. Martin & Juan M. Sanchez, 2022. "Policy Rules and Large Crises in Emerging Markets," Working Papers 2022-018, Federal Reserve Bank of St. Louis, revised 14 Oct 2023.

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    More about this item

    Keywords

    COVID-19 pandemic; policy response; impact evaluation; Uruguay;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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