Theoretical and Applied Economics
No. 3 / 2020 (624), Autumn
Covid crisis: Fiscal, monetary and macro-financial policy responses
School of Economics and Management Wuhan University, Hubei, China
Abstract. The ongoing COVID-19 pandemic in the world is deepening a profound impact and economic uncertainty. In essence, lockdown and social distancing measures are triggering losses in global production, supply, trades, investments, and employment. This article, to counteract the economic losses and macroeconomic uncertainty, explores the policy evolution of macroeconomic effects during the COVID-19 pandemic. It has communicated different policy responses addressing the potential economic damages in the G-7 countries and 24 emerging market economies (EMEs). The article also illustrates the lockdown and regulatory implications and dynamic economic interventions mandated by the governments, monetary authorities, and central banks. The study demonstrates the potential impact of fiscal, monetary, and macro-financial policy measures on the economic losses caused by regulatory and quarantine measures. Monetary authorities and central banks have lowered the policy rates like repurchase agreement rate (repo), reverse repo, cash reserve requirement (CRR) to ease the liquidity supplies to the economy. Central banks also offered credit facilities to cater to the demand for loans and advances. The study finds that G-7 economies and emerging market economies have implemented a comprehensive fast-track fiscal, monetary, and macro-financial policy to counteract the pandemic's negative economic consequences. The policy measures include the fiscal stimulus package, direct spending, loans, and credit facilities, refinancing schemes, swap agreement, discount loan window, tax cut on credit, short term loan extension, bridge finance, policy rate cuts, bond purchase, SMEs financing. These policy measures, if implemented successfully, are predicted to minimize the impact of the crisis and to stabilize the economies.
Keywords: COVID crisis; macroeconomic; impacts; policy; G-7; emerging economies.
Contents
- Social protection systems and economic growth
Dorina GHEȚAN
Ada PAIERELE
- Analysis of the impact generated by COVID-19 in banking
institutions and possible economic effects
Nora CHIRIȚĂ
Ionuț NICA
- Covid crisis: Fiscal, monetary
and macro-financial policy responses
Provash Kumer SARKER
- Impact of education and government effectiveness
on the shadow economy
Sorina Emanuela ȘTEFONI
Andreea DRAGHIA
- Financial development and income inequality:
An empirical analysis on the emerging market economies
Günay ÖZCAN
- Aspects and evolutions specific to monetary policy
in Romania. A complex topical analysis
Alin Ioan CREŢU
Laurențiu TEȘCAN
- Structural modeling of fiscal structure for policy analysis:
A case study of India
Rajbhushan J NAYAK
Vishwanath PANDIT
Gopakumar K. U
- Macroeconomic variables and market expectations:
Indian Stock Market
Neha GUPTA
Arya KUMAR
- Relationship analysis of stocks prices and exchange rates
of three leading Asian economies
ANISHA
AASTHA KHERA
- Bitcoins as a determinant of stock market movements:
A comparison of Indian and Chinese Stock Markets
Pritpal Singh BHULLAR
Dyal BHATNAGAR
- The causal relationship between
Indian energy consumption and the GDP:
A shift from conservation to feedback hypothesis
post economic liberalisation
Saakshi CHAUHAN
Rajnish PANDE
Subrat SHARMA
- The dependence and dynamic correlation between
Islamic and conventional insurances and stock market:
A multivariate short memory approach
Rym Charef El ANSARI
Riadh El ABED
- Does exchange rate has any impact
on economic growth in India?
An empirical analysis
Khulsum SHAIK
Babu RAO G
- Corruption, technological innovation
and environmental quality in South Asian countries:
An empirical insight
Malayaranjan SAHOO
Deeptimayi SAHOO
- Analysis of the quarterly evolution
of the Gross Domestic Product
Constantin ANGHELACHE
Mădălina-Gabriela ANGHEL
Ștefan Virgil IACOB
Tudor SAMSON
- The main theoretical aspects regarding
the capital adequacy models
Constantin ANGHELACHE
Dana Luiza GRIGORESCU
Ștefan Gabriel DUMBRAVĂ
- Considerations regarding the effects of COVID-19
on the tourism market
Cristina-Andrada BABA
Aurelia-Felicia STĂNCIOIU
Manuela Rozalia GABOR
Florin-Alexandru ALEXE
Flavia Dana OLTEAN
Alexandra Cristina DINU