The COVID-19 pandemic has led to many countries enacting various COVID-19 economic policy responses to protect multiple industries. The COVID-19 pandemic has emerged as one of the most significant health challenges since the second world war. Moreover, the virus has spread to every continent except Antarctica. The COVID-19 pandemic economic impact continues to affect the world, with commercial activities slowing down. Significantly, the manufacturing and hospitality industry has been dramatically affected by the pandemic. Notably, countries heavily reliant on tourism are suffering from people losing their jobs and businesses closing. The COVID-19 economic policy response towards the COVID-19 pandemic will allow industries to survive through the financial turmoil.

 COVID-19 pandemic and COVID-19 economic policy response

COVID-19 PANDEMIC ECONOMIC IMPACT AND COVID-19 ECONOMIC POLICY RESPONSE

The COVID-19 pandemic economic impact has emerged almost in every continent that faces the Coronavirus emergency. The COVID-19 pandemic has challenged governments to various fiscal policies and monetary policies. Importantly, the systems are essential in supporting and sustaining the economic activities of the country. However, the plans have some differences globally due to differing nationalistic views. Notably, the COVID-19 economic policy response has shown intensified policy differences between developed and developing countries. Furthermore, the IMF projects a weak recovery of the global economy due to uncertainties and business closures. Solutions to the COVID-19 pandemic, especially concerning the economy, require swift analysis and implementation to save jobs and economies.

COVID-19 pandemic economic impact and COVID-19 economic policy response

COVID-19 ECONOMIC POLICY RESPONSE AND ECONOMIC POLICY TRIFECTA

The COVID-19 economic policy response involves the use of industrial policy trifecta. Importantly, the trifecta has three elements that are mitigation, preservation, and recovery. Mitigation consists of measuring the demand stimulus by targeting health systems and transfers to workless households. Moreover, broad monetary policies will be essential to the mitigation plan. However, a continued negative COVID-19 pandemic economic impact will lead to a decline in the economy. Secondly, there is the preservation which supply-side measures should aim to keep workers in companies. Thus, there is a need for employment retention schemes to cushion workers. The COVID-19 pandemic has led to various economic responses by the government to help contain the situation.

COVID-19 economic policy response and economic policy trifecta
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