To give an idea of the relative impact, a permanent increase of 100 basis points in the yields of all government bonds implies that interest payments will be greater by 0.15 per cent of GDP in the first year, 0.3 per cent in the second year, and 0.45 per cent in the third year. Policy scenario.
On the fiscal policy front, the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) provided economic stimulus checks and enhanced unemployment benefits to individuals as well as eviction moratoriums for renters and a requirement that mortgage servicers grant borrowers up to 12 months of forbearance.