First, refresh your memory on the economic damage of the pandemic by watching these two videos:
Watch this video:https://www.youtube.com/watch?v=f9v6givfTEA
Watch this video:https://www.youtube.com/watch?v=wUUWoN4LKuE&t=2s
Read this article about how rich countries initially reacted: How to pay for the pandemic - Covid-19 could usher in a new era of sovereign-debt managemen.pdf
In more recent news:
Read this article: Joe Biden’s stimulus is a high-stakes gamble for America and the world.pdf
Read this article: After the pandemic, will inflation return.pdf
Read this article: How rising inflation could disrupt the world’s economic policies.pdf
Your task: create a new thread where you answer the questions below:
- What was the effect of the pandemic on the eocnomy in the short run (think 2 years from the start of the pandemic)?
- How did governments (fiscla and monetary authorities) respond intially to the lock downs?
- Describe the effect of the interction between fiscal and monetary policy in the short run.
- Describe the effect of the interction between fiscal and monetary policy in the long run.