US Fiscal and Monetary response to Covid

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US Fiscal and Monetary response to Covid

Every government strives for economic development and growth. However, some unavoidable circumstances can affect stability in the economy and hinder a country in achieving its goals for economic growth. The government is charged with taking appropriate measures to limit the negative effects of these incidents. This COVID-19 pandemic is a prime example of an event that is threatening nations and their economies. This article discusses what the US government’s economic policies to address the outbreaks impacts, the economic theories to support the policies, and an opinion.

Economic policy decisions of the Government

The government implemented a range of steps to stop spreading of Covid-19. Companies were forced to shut and events were cancelled and work-from home laws were enacted throughout the United States owing to the coronavirus outbreak. The financial markets were impacted because of this “rush in cash” an urge to keep deposits and other assets that were highly liquid and a general feeling of anxiety regarding the future of the virus. It was the job of the Federal Reserve to keep credit moving and to limit the economic impact caused by the epidemic. This paper outlines the US government’s response to the COVID-19 pandemic.

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