Great topic to cover this week. The Great Recession began in December 2007 and ended in June 2009, which makes it the longest recession since World War II. As the financial crisis and recess
RPLY TO THIS CLASSMATE ON THE DISCUSSION THREAD WITH 100 WORDS
Great topic to cover this week. The Great Recession began in December 2007 and ended in June 2009, which makes it the longest recession since World War II. As the financial crisis and recession deepened, measures intended to revive economic growth were implemented on a global basis. The United States, like many other nations, enacted fiscal stimulus programs that used different combinations of government spending and tax cuts. These programs included the Economic Stimulus Act of 2008 and the American Recovery and Reinvestment Act of 2009. This guidance was intended to provide monetary stimulus through lowering the term structure of interest rates, increasing inflation expectations (or decreasing prospects of deflation), and reducing real interest rates. With the recovery from the Great Recession slow and tenuous, the forward guidance was strengthened by providing more explicit conditionality on specific economic conditions such as “low rates of resource utilization, subdued inflation trends, and stable inflation expectations” (Board of Governors 2009b). The COVID-19 pandemic greatly disrupted economic activity all over the world. The pandemic affected both the supply and demand side of the economy, hampering firms’ ability to produce, as well as consumers’ ability to consume. While the pandemic and associated public health restrictions were the main drivers of economic fluctuations over the past two years, fiscal stimulus policies might have shaped the response of consumption and production to changes in mobility. We find that governments that provided generous fiscal support mitigated the drop in goods consumption in periods of lockdowns, while boosting consumption in periods of increased mobility. The effect of fiscal stimulus on services consumption, however, is insignificant. The COVID-19 pandemic hampered firms’ ability to produce and consumers’ ability to consume. In response to economic disturbances, many governments resorted to large fiscal stimulus. This policy was successful at boosting consumption which, together with relatively inelastic supply, may have led to supply chain bottlenecks and price tensions.
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
