Fiscal and Monetary Policy

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:

  1. What was the effect of the pandemic on the eocnomy in the short run (think 2 years from the start of the pandemic)?
  2. How did governments (fiscla and monetary authorities) respond intially to the lock downs?
  3. Describe the effect of the interction between fiscal and monetary policy in the short run.
  4. Describe the effect of the interction between fiscal and monetary policy in the long run.