Theoretical approach of macroeconomic policy measures for solving economic consequences of Covid-19
Journal
Economic Development, Journal of the Institute of Economics – Skopje
Date Issued
2020-06
Author(s)
Elizabeta Djambaska
Aleksandra Lozanoska
Abstract
COVID-19 is a virus that cause health problems to the population and
spread very fast in the world as a pandemic. At the same time when the health
and human lives are affected, economy is also impacted by an outbreak.
The primary effect of the corona crisis, that defers it from some previous
ones, is that the initial economic shocks occur simultaneously on supply
and demand side. The shocks initially are caused by the state measures
taken for the virus spreading i.e. the state decree for restrict or prohibit
human movement, tourist travel, the work of business entities in some
activities was completely reduced, in others significantly limited. Hence,
one of the first sectors impacted by an outbreak is the public and private
health system, then tourism, trade, transport, agriculture, constructions and
industry. Indirectly and in very short time the functioning of the whole
economy is threatened.
The main question is, are the government interventions in the economy
necessary and which measures are appropriate to manage the economic
consequences from the pandemic. This paper discusses about the theoretical
approach of the macroeconomic measures that government can use on both
supply and demand side in the economy, for solving the imbalance. Important
part of the paper is the short review of some ongoing macroeconomic policy measures in the EU countries and in North Macedonia, as an active response
to the pandemic effects.
spread very fast in the world as a pandemic. At the same time when the health
and human lives are affected, economy is also impacted by an outbreak.
The primary effect of the corona crisis, that defers it from some previous
ones, is that the initial economic shocks occur simultaneously on supply
and demand side. The shocks initially are caused by the state measures
taken for the virus spreading i.e. the state decree for restrict or prohibit
human movement, tourist travel, the work of business entities in some
activities was completely reduced, in others significantly limited. Hence,
one of the first sectors impacted by an outbreak is the public and private
health system, then tourism, trade, transport, agriculture, constructions and
industry. Indirectly and in very short time the functioning of the whole
economy is threatened.
The main question is, are the government interventions in the economy
necessary and which measures are appropriate to manage the economic
consequences from the pandemic. This paper discusses about the theoretical
approach of the macroeconomic measures that government can use on both
supply and demand side in the economy, for solving the imbalance. Important
part of the paper is the short review of some ongoing macroeconomic policy measures in the EU countries and in North Macedonia, as an active response
to the pandemic effects.
Subjects