Fiscal Policy: Economic Impact of the Covid-19 Pandemic

International business discipline
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Contents
Fiscal policy: Economic impact of the Covid-19 pandemic and their impact on national finances
and future economic growth............................................................................................................3
REFERENCES................................................................................................................................8
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Fiscal policy: Economic impact of the Covid-19 pandemic and their impact on national
finances and future economic growth
Fiscal policy is the means by which government adjusts its current spending level or tax rates to
track of monitor the economic condition. It is consider as efficient strategy in term of monetary
policy through which a central bank influence with different money supply chain. This Essay
will discuss about the concept of fiscal policy and their impacts on the economic condition
during COVID-19 pandemic. It will describe about the fiscal measures which is mainly used and
assess the legacy, they will leave for both economic growth as well as national finances.
Furthermore, this essay will determine the general fiscal policy measures which will be taken in
response to the economic impact of pandemic. However, summarised the current ‘Keynesian’
response in the different countries from austerity response as well as reliance in context of
monetary policy.
COVID-19 is one of the global pandemic and also consider as public health crisis. It has
been severely affected the entire global economy as well as financial markets. This had
significantly reduce the income, a rise in the unemployment and disruption within transportation
services. Each and every industries are affected due to COVID-19 pandemic.
For Example- In March 2020, World health organization has been declared that 207,973
deaths in 213 countries. It is not only become as public health crisis but it also affected the global
economic (Makin and Layton, 2020). It will be reduce the profitability, enterprise closures, loss
of life and other kind of trade disruption. Moreover, global financial markets have majorly
impacted by effect of coronavirus. Generally, US, Germany, France and Iran, declined the oil
markets significantly.
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