We know that the COVID-19 was the global challenge and impacted everyone. Still surviving are most crucial action required especially in the development of the economic sector.
Opinion are talking about focusing and enhancing on the health sector, giving up mandatory priority on the education etc.
Now, the economist are formulating on the best economic model in starting back the industry.
In aligned with Industrial Revelation 4.0 and others world agenda - what will be the best solution in doing this ?
To encourage discussion of the economic impact generated by the SARS-CoV-2 virus, and the control measures taken at the international level, we invite you to read the following article.
Economy or Health, Constant Dilemma in Times of Pandemic: The Case of Coronavirus Disease 2019 (COVID-19). Journal of Pure and Applied Microbiology, 2020. DOI: 10.22207/JPAM.14.SPL1.07
Article Economy or Health, Constant Dilemma in Times of Pandemic: Th...
The best solution is dividing the economy into different zone. Example red, yellow and green. Green being the most safe. The businesses should first open in green zone with least Covid-19 cases and government should work on red and yellow zones so that they can be converted into green zone before opening up.
Dear Sutiman,
Though most stock markets (and oil prices) have nosedived recently, the transitory effects will have prolonged impacts on economies and companies’ earnings because of Covid-19 pandemic and health crisis.
This is also evidenced by the fact that the Fed decreased very recently interest rates to zero levels and the markets keep nosediving. This is an indication that markets are already far sighting and factoring the long-term impacts of current world events because of Covid-19 pandemic and the resultant health crisis.
I am afraid, but current world events will have major impacts on countries and companies’ earnings, which will definitely led to many bankruptcies worldwide.
The recovery from the economic impact of the Covid-19 health crisis will take lot of efforts and prolonged period of time.
Prof. Dr. Mazin A. M. Al Janabi
Full Professor of Finance & Banking and Financial Engineering
EGADE Business School, Tecnologico de Monterrey,
Santa Fe Campus, Mexico City, Mexico.
Dear Sutiman Abd Shukor,
When the first wave of the SARS-CoV-2 (Covid-19) coronavirus pandemic appeared in March 2020, interventionist, anti-crisis instruments of monetary policy (interest rate cuts by the central bank), budgetary and fiscal policies (tax breaks and cancellation of transfers) were launched in some countries on the social security system, non-returnable subsidies to the salaries of employees, costs of the business entity run, etc.), sector policy (development of investments in construction and communication infrastructure financed from the funds of state public finance systems, etc.), policy ... A significant part of this type public aid aimed at commercially operating business entities is offered under the so-called Crisis Shields and Industry Shields. Financing of this type of anti-crisis government programs supporting commercial sectors comes from the state budget, from the increase in the debt of the state finance system through the issue of state treasury bonds. In a situation where the monetary policy instruments of the central bank are full, it is possible to buy out subsequent issues of treasury bonds by the central bank, which in this way introduces additional money into the economy, acting as an anti-crisis instrument. As long as the level of inflation is low and, from the point of view of state finances, a low exchange rate of the national currency is also desirable, then the central bank can introduce additional money into the economy, which is used to finance further anti-crisis measures. It is a modified and practical formula of the so-called "Helicopter Money" by Milton Friedman. Anti-crisis, Keynsian, anti-recession state interventionism based on active, gentle fiscal policy has been used since the 1930s. Anti-crisis state intervention based on active, easy monetary policy was most recently applied when the global financial crisis emerged in September 2008. The anti-crisis, interventionist socio-economic policy programs currently used in individual countries draw on, refer to selected solutions, applied specific instruments that activate economic processes, socio-economic, monetary policies, etc. during previous economic and financial crises.
Best regards,
Happy New Year 2021
Dariusz Prokopowicz