The current crisis is different from all others. The cause is a virus that we knew very little about when it struck us. Thus, the solution is contingent on finding a cure and a vaccine.

Fiscal and monetary policies should be designed to provide relief for those affected by it the most (Businesses and households). A call to stimulate the economy under these circumstances is not an economically solid call.

Backing up an economic policy with 'government money' can only serve as short-term stimulus; so, if the policy will not yield gains in productivity, in the longer run, it will create financial and monetary instability, i.e. deepening social conflict.

The challenges at present are the high level of net government debt (as a proportion of GDP) and stimulus policies generally add to that debt. Some countries also have 'rules' such as the central bank managing inflation within a target range. On the positive side debt is relatively cheap so it is a good time to borrow for governments. Of course during Covid government revenues have declined significantly which puts more pressure on their finances as the tax take has diminished and the welfare budget increased as people lose their jobs. I guess it depends on the time horizon. On average right of centre governments prefer to pay down borrowing more quickly than left of centre governments so there is a political aspect to their decision-making.

Fiscal policy is not as per the budgetary expectations of the governments in the world during this financial year 2020-21 due to unexpected COVID19 in the world.

Public revenue of all countries has come down drastically on one side and on the other side, the Public expenditure of all countries has been enormously increasing. Hence Compensatory Fiscal policies are the need of the hour in the present pandemic period to all countries in the world.

Globally all the countries have been suffering from widening deficits.

Similarly, Monetary policies also have been subjected to many challenges and economic instability.

Expansionary monetary policies are very much required at this juncture to accelerate the growth of the economies.

Acceleration of GDP, liberal credits, reduction of tax rates, Provision of employment opportunities, public distribution scheme mainly to maintain food security to the people under BPL, more expenditure on health care, etc should be focussed as the need of the hour after the Lockdown period.

Of course, problems of all countries are similar during this COVID19 period, however, we cannot prescribe the same Macroeconomic strategies to the suffering economies.

Dr.L.Krishna Veni

Have a look at these 2 articles to fathom the monetary effects of COVID-19 pandemic so far:

1. The COVID-19 Pandemic and the $16 Trillion Virus

https://jamanetwork.com/journals/jama/fullarticle/2771764

2. Article Spillover of COVID-19: impact on the Global Economy

Agreed marc

The fact that the present crisis originates from an external factor, outside of economic milieu is a challenge to any economic decision maker. Essentially all run-of the- mill economic theories are practically inutile to the devastating effects of this pandemic. Just like the covid 19 pandemic, economic problem should be approached and addressed individually. Although the impact of the pandemic is worldwide, the economic impact is of varied magnitudes. In the Philippines for instance, the greatest challenge to the government is the problem of hunger brought about by unemployment. So the immediate solution is to address hunger by the governments created program, the "social amelioration program", providing financial assistance to all affected by the pandemic, at least temporarily, until the pandemic exist. In the long-run the problem subsides with the employment program initiated by the government.

It is important that the authorities should not be overwhelmed by this worldwide catastrophe lest we be shaken and finally economically broken by this once in a lifetime global disaster. @UST @CSJL

Fiscal Policy has failed to provide a suitable tax structure for the country. Tax structure has failed to raise the productivity of Direct Taxes and the country has been relying much on Indirect Taxes. Therefore, the tax structure has become burdensome to the poor. Moreover, existence of PARALLEL ECONOMY is also responsible for the lack of desired results through implementation of Fiscal Policy. Very recently a lot of measures have been taken by Govt of India under Atmanirbhar Bharat(Self Reliant India) scheme. It will result in a number of benefits to the economy shattered by COVID-19.

Very expansionary monetary and fiscal policies are both very inflationary. High inflation would destroy an economy. However, presently this is no excuse for monetary and fiscal discipline. The world economy is undergoing through extraordinary different time (deep recession), therefore macroeconomic policies must be adopting extraordinary different extraordinary expansive policies.

There is no place for orthodox monetary and fiscal policies till we are out of the doldrums. The vast majority of countries pursue such policies.

kind regards

Certain instruments of monetary and fiscal policy are used under the so-called Anti-crisis shields and other interventionist, Keynsian, anti-crisis socio-economic policies. Currently, in many countries, in connection with the development of the SARS-CoV-2 (Covid-19) coronavirus pandemic, specific pro-development instruments of monetary and fiscal policy are used to activate economic activity, limit the growth of unemployment, decrease in income, consumption and investment. I described similar processes and activities in publications on the Research Gate portal, in which I presented the pro-development instruments of monetary and fiscal policy used during the global financial crisis that appeared in 2008. I invite you to cooperate on this interesting and current issue. Greetings,

Dariusz Prokopowicz

Reacting to the shocks caused by the pandemic crisis in a timely manner is crucial to the success of policies. Most of the policy prescription in monetary and fiscal policies is to shift the burden to the savers. Lowering interest rates or expanding the central bank asset base through printing money or taking over some failed asses will push the burden of adjustment to the savers. Monetizing the debt will not be a problem in a non-inflationary environment. The ability of central banks to tiptoe this before inflation shows up is crucial to the success of the policies. This has been tried by the US Fed during the Global Finance Crisis.

it' s at svensson model; political money game...

Monetary policy and fiscal policy are the policies used by the governments in controlling the economy. The target is to control the economy. But according to the question, the authorities face challenges in implementation. Due to the size of the structure of the tools (fiscal + monetary), definitely they (authorities) face macroeconomic challenges like inflation, money supply, political instability, changing of interest rates, exchange rates, among others. For example, during boom, the authorities use the tools to reduce money supply in the economy. But the time of implementation, you find unplanned issue (like covid 19) the solution of which is money supply increase, or in solving the issue will end up increasing money supply and cause another issue, so the fail of implementation of the tools (fiscal policy and monetary policy). Not only that but also, another example is implementing the policies during war where the are economic paralysis in majority of the region. The authorities can implement policies targeting to increase/reduce money supply but in the midst of its implementation, the war ends and soon the inflation/deflation begins. The same to political instability which ends on disturbing the economy and its planning results. For example changing of political leaders in the country leads on changing the situation regardless what was implemented for curing the economy. These are among the challenges faced by fiscal and monetary authorities in the implementation of policies.

Regardless of policy approach whether its expansionary or contractionary, the implementation of the program depends on the problem that exists. Each economic problem has varied approaches. Seldom you can see that two countries will have identical approach, and that is because of historical uniqueness