Question

Why is it important for the government to measure the economy? What kind of actions might it take to stimulate economic growth especially actions to take to have the corona virus pandemic under control.

Answer 1

Importance of measuring the economy:

• Estimating economy is the principle duty of government. The government needs to gather burdens and go through that gathered cash for government assistance of overall population.
• Government gauges each angle or area of economy to think about which area needs investment, subsidies and the amount of charges that ought to be forced without putting it's substantial weight on open.
• Estimation of economy likewise gives data about level of unemployment, level of Inflation, level of Deflation etc. Government needs to act as per these circumstances to balance out the economy.
• Government comes to know which areas are abandoned and need venture for balanced development of the economy.

Kinds of Actions that the government might take are as follows:

• Present new type of value capital: A connected proposition is furnish the improvement keeps money with another type of capital. Today they have two kinds of capital – paid-in capital which considers value on the banks' accounting reports; and callable capital which must be utilized when an improvement bank is shut down to take care of bondholders. It is helpful to have a transitional type of capital that could be brought in when banks are presented to a stun like the current one. Again evaluating organizations would perceive such help in their appraisals. The European Stability Mechanism has this sort of unexpected capital.
• Make a G20 "whatever-it-takes" explanation: Regardless of whether these two thoughts couldn't be acknowledged right now, the G20 could, with help from other key investors, make a "whatever-it-takes" proclamation, promising that extra capital would be inevitable if the circumstance further crumbled. While such an announcement may not quickly dazzle rating organizations, it could rouse advancement and huge thoughts inside and outside the MDBs. It would likewise console governments in the most exceedingly terrible hit rising and creating economies that assets will be inevitable.
• Permit the IMF to acquire from business sectors: The IMF could be permitted to acquire in the capital business sectors, conceivably utilizing right now unused SDRs as insurance. Such loaning would need to be related with significant shields to forestall private area inclination in loaning, however it could essentially expand IMF capability.

• Set up liquidity barrier for MDBs: One advancement that could enable the MDBs to build their loaning limit is furnish them with an alleged liquidity barrier. Not at all like business banks most multilateral advancement banks need programmed admittance to help from governments on account of a liquidity setback. Rating offices would overhaul them if a gathering of national banks met up, perhaps intermediated through the IMF, and gave a liquidity office. The European Investment Bank approaches such help from the ECB.

• Pool accounting reports to expand MDB acquiring limit: On the advancement money establishments, there ought to be extension for additionally pooling of monetary records, after all they have pretty much similar investors, if in fairly various heavenly bodies. There are cutoff points to what in particular can be accomplished through such endeavors, yet especially for the more modest foundations with concentrated portfolios this could demonstrate significant. As a side-effect, the taking an interest organizations would be urged to normalize advance arrangements and by and large become more rational as a framework.