A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All
Warrier, P. Nandakumar
- The Impact of Covid-19 on the Macro Economy with Special Reference to the USA
Authors
1 Distinguished Professor of Economics, Chief Editor, International Review of Business and Economics, Campus Box 77, P. O. Box 173362, College of Business, Metropolitan State University of Denver, Denver, CO 80217-3362, US
2 Professor of Economics, Department of Economics, University of South Stockholm at Sodertorn Sodertorn, SE
3 Department of Economics, Indian Institute of Management Kozhikode, Kozhikode, IN
Source
ANVESHAK-International Journal of Management, Vol 10, No 2 (2021), Pagination: 132-161Abstract
In this paper we investigate impacts of the pandemic on the US economy in the aggregate, and on various sectors and types of businesses and groups. Noting the theoretical premises that imply varying responses across country types, the developments in a number of some other countries are also touched upon. It is seen that while the “K” type recovery dominates in almost all countries, this similarity hides some differences. A general fiscal expansion is seen not to provide a lifeline out of them crisis as the recession is a mix of the demand and supply type, and different in a number of aspects from the financial crisis of 2007-09 as well as the oil price shock scenarios of the 1970s. Fiscal policies will have to be tailor-made, and can vary according to country needs, depending on the fiscal health of the country. Monetary expansion seems possible, given the low inflation risk. US monetary expansion can come as a boon to other countries opting for monetary expansion, since the risk for depreciation against the dollar is removed. Policies to help small businesses and disadvantaged groups can also help in boosting aggregate demand, but may not be continued indefinitely into the future as the behaviour patterns of economic agents may be then changed permanently.
Keywords
US Economy, COVID Effects, Macro-economy, Pandemic
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