Question

Discuss the economic shock caused by the COVID-19 pandemic. Discuss the economic policy responses implemented so far, and any possible further economic policy responses.

Answer 1

Answer -

Economic policies implemented so far -

The COVID -19 feels like a war,Many people are facing so much difficulty in their routine lifes.Many people are dying.Many people working at essential sectors like food distribution, public utilities devoted their extra time and work for rescuing of people from it.

In this concern all things are more complicated and increased role of public sector.At this level policy reqires to be implemented at 2 levels.

1.When this epedimic is in full spreading for saving lives of people several measures are required,it may be for one or two quarters.

2.When this will be under control with vaccines,drugs then continued but less disturbing containment measures are required for normal functioning of the economy.

The sucess of this measures will depend upon the policies undertaken during crisis.If the implemented policies ensure that companies avoid bankruptcy, trade networks are protected , employees don't loose their jobs then it will positive results of policies.In this situation low and less developed economies required grants and financing from international financial organisations for survival of the economy.

Possible further economic policy responses

1.Member countries have continuously give efforts to support the economy.

2.Public resources are moved to strengthen health care sector to assist affected people and economic sectors.

3.Member states will provided liquidity support for economic sectors to big companies and organisations facing financial shortages.

4.The Eurogroup will follow the work required taking in to account the purpose of Council to take timely legislative measures.