Guiding economic policies in times of crisis
Nicolas Vincent is part of a team of researchers studying the impact of the pandemic and the resultant economic measures introduced on Canadian household finances.
The effectiveness of certain aid measures is difficult to predict
- The unexpected arrival of the pandemic resulted in sudden and massive job and income losses.
- Financial institutions, in collaboration with government authorities, provided households with the option of taking a break from paying off certain types of debt and reducing certain interest rates.
- To measure the effectiveness of these policies, we need to be able to identify the households that really need them and observe their reactions in times of crisis.
Shedding light on household finances during the pandemic
- An analysis of de-identified data belonging to hundreds of thousands of Canadians will help track their financial situation (e.g., level of debt, payments) on a monthly basis.
- The impact of COVID-19 on household finances can be assessed with the help of such in-depth data and statistical tools.
- The results of this study will help economic decision makers design policies that effectively reduce the adverse effects of the current crisis (or future crises) on citizens’ wallets.