Yale School of Management

Posts by Analyses of Specific Interventions

Pandemic catalyzes transition to cashless benefits

August 4, 2020
Health concerns and the sudden implementation of economic shutdowns have caused many countries to expedite or expand transitions to the cashless administration of government benefits in order to make their support efforts as effective as possible. Cashless supports for individuals offer speed, security, and availability that far outperform cash in combating the COVID-19 pandemic, given its unique circumstances. In some countries, increased adoption of cashless technology is an escalation of previously-announced long-term policy goals. Other governments have expedited the transition from cash-based systems to digital payment capacities.  Continue reading “Pandemic catalyzes transition to cashless benefits”

More Aid Offered To Airlines as Pandemic Continues to Depress Demand

July 30, 2020
For four months, social distancing measures have hobbled the airline industry with depressed demand, grounded flights, and net losses. Ridership remains low, held down by travel prohibitions between countries that normally supply heavily trafficked routes. With persistent losses and pessimistic future forecasts, several European airlines have now received aid from their governments to maintain solvency for those companies critical to industry supply chains. Continue reading “More Aid Offered To Airlines as Pandemic Continues to Depress Demand”

Design Considerations and Interesting Features of SME Support Programs

July 23, 2020
Over the past four months, governments have announced more than 700 programs to provide assistance to small- and medium-sized enterprises. These firms are vital to the world economy and are particularly vulnerable to the COVID-19 shock.   YPFS has compiled a list of design considerations for policymakers in developing and implementing SME support programs. Under each design consideration, we have a number of observations regarding interesting features and design challenges seen across programs to date.   Download this PDF to access our resource.  Continue reading “Design Considerations and Interesting Features of SME Support Programs ”

Cross-country Comparison of Economic Outcomes and Policy Responses to Support Individuals in June

July 22, 2020
Since March, countries around the globe have implemented policies to support individuals and households through the downturn that has resulted from the global COVID-19 pandemic. Over the last five months countries have implemented different economic policies in response to various stages of the pandemic. Based on the YPFS four-phase model of the economic consequences of the pandemic, Run-Rescue-Recession-Recovery, this blogpost discusses different policy trajectories and economic outcomes for countries at different stages of the pandemic, with a focus on support to individuals.  Continue reading “Cross-country Comparison of Economic Outcomes and Policy Responses to Support Individuals in June”

Utilization of Credit Support Programs for SMEs

July 20, 2020
In response to the COVID-19 pandemic, governments have implemented a variety of programs to support small- and medium-sized enterprises (SMEs). A large portion of these programs are designed to facilitate credit access. These programs range in size, eligibility, and terms. YPFS has begun to compile usage information on 26 major programs across 16 countries. The information can be found in this spreadsheet.   Continue reading “Utilization of Credit Support Programs for SMEs”

Countries Continue to Adopt and Update Credit Guarantee Schemes for Small Business Lending

June 29, 2020
In response to the COVID-19 pandemic, many countries quickly announced credit guarantee schemes to support lending to small and medium-sized enterprises (SMEs). Under a credit guarantee scheme, the government fully or partially guarantees the value of a loan to an SME, which minimizes the risk to the lender, incentivizing the lender to provide credit. According to recent data from the World Bank, 41 countries have launched 57 credit guarantee schemes for SMEs this year.  Continue reading “Countries Continue to Adopt and Update Credit Guarantee Schemes for Small Business Lending”

COVID-19 and Insurance (3 of 3): Capital Conservation and Countercyclical Regulation

June 17, 2020
Insurance supervisors around the world outside the U.S. have urged companies they supervise to conserve capital during the COVID-19 crisis by limiting payouts to shareholders and bonuses to executives.  At the same time, many supervisors have sought to help insurers avoid procyclical behavior by mitigating the impact of volatile market swings on the value of insurance company assets and, in turn, on measures of their capital adequacy.  Continue reading “COVID-19 and Insurance (3 of 3): Capital Conservation and Countercyclical Regulation”

COVID-19 and Insurance (2 of 3): Operational Regulatory Relief

June 16, 2020
Many insurance supervisors have provided temporary relief to help companies manage during the COVID-19 crisis. Most of this relief comes in the form of extended deadlines for submitting various reports or provisions that make remote compliance easier. Regulators have also suspended supervisory activities and loosened accounting rules. Continue reading “COVID-19 and Insurance (2 of 3): Operational Regulatory Relief”

COVID-19 and Insurance (1 of 3): Helping Individuals and Businesses

June 15, 2020
Insurance companies face unusual challenges during the COVID-19 crisis. This blog describes efforts by companies and their supervisors to: Reduce financial burdens on insurance customers, for example, by allowing them to defer premium payments.  Resolve the controversy over whether existing insurance coverage extends to businesses that have lost revenue during the crisis. Continue reading “COVID-19 and Insurance (1 of 3): Helping Individuals and Businesses”