Global Economy U.S. Case Study 2022

Running head: ECONOMY
Econo
my
March 26
2020

ECONOMY 2
Contents
Introduction.................................................................................................................... 2
Monetary and Fiscal Policies.............................................................................................. 2
Conclusion..................................................................................................................... 5
Works Cited................................................................................................................... 6

ECONOMY 3
Introduction
The Pandemic COVID-19 is threatening the global economy. The monetary policy instruments
available to deal with crisis situations are dwindling. Even if deploy existing tools, their effect
will be minimal.The federal government is working to relieve the pressure the U.S. economy is
facing as the coronavirus pandemic turns its swift transition from public health crisis to financial
disaster. Contemporary damage from COVID-19, the illness caused by the new virus, is unlike
anything. Economists have warned that the fallout might dwarf the 2008 recession, the worst
downturn many Americans can recall.
Monetary and Fiscal Policies
A financial fall in a bucket was the first big piece of legislation to repair COVID-19. President
Donald Trump signed the $8 billion emergency package on the same day 100,000 cases across
the globe passed in early March.This gave funding to officials still struggling to control the
epidemic, allocating $3 billion for research into vaccines (Dayrit and Ronald U. Mendoza 3)
In an attempt to stabilize the economy, the Federal Reserve announced it would pump up to $1.5
trillion into the financial system. The step came in the midst of liquidity issues and pushed
markets higher initially, although some analysts cautioned that it was not enough.Trump
promised a reprieve to student loan lenders, promising that all interest on federal student loans
would be suspended for the duration of the coronavirus emergency. A week after Trump's
pledge, however, lenders said that interest was still being paid. A Department of Education
spokesperson said value added after Trump's announcement would be retroactively removed
(Casillas, et al 301).