Original scientific paper
https://doi.org/10.1080/1331677X.2022.2042710
Counterfactual analysis among Covid-19: fiscal and monetary policy for green economic recovery
Zhen Liu
Lu Lu
Thanh Tiep Le
Hayot Berk Saydaliev
Abstract
This study examines fiscal-monetary policy links in America across
a time period that includes the recent global economic crisis and
the COVID-19 emergency. Hypotheses deviate that regulatory
administrations are permanent and calculate fiscal policy yearly
percentage rate and budgetary regulations which are likely to
change between two governments. Additionally, study uses the
VAR technique to evaluate the effects of financial initiatives similar
to those undertaken in the aftermath of the Covid-19 outbreak.
Results discovered that fiscal policy is more successful than
monetary policy, and that lavishing on public debt helps increase
short-run economic performance. People argue that concerns
about a rapid rise in prices as a result of fiscal stimulus are
unfounded because the US economy was not close to full
employment or full use of funds prior to the global epidemic,
and the dissemination processes that could contribute to accelerating
rising prices are not always in place. As a result, with the
withdrawal of monetary stimulus, the favourable effects on actual
GDP and real private expenditure are gone. Long-term mortgage
rates have risen, money invested has decreased, and prices have
risen, raising concerns about the banking system’s inflationary
tendency.
Keywords
Fiscal- monetary policy; economic recovery; debt spending; America; inflation
Hrčak ID:
302958
URI
Publication date:
31.3.2023.
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