give your opinion regarding the decision taken by our democratically elected government with concern of 'Corona pandemic'
Answers
Explanation:
The economic consequences of the COVID-19 pandemic call for urgent policy responses to keep the economy afloat and enable people to retain their jobs and incomes. Most of the measures envisaged at present are macroeconomic in nature, focussing largely on the provision of emergency liquidity by central banks. Fiscal measures that have been announced at this stage include broad-based tax relief (e.g. VAT reductions and deferred payroll charges), wage subsidies, unemployment benefits, the deferment of utility bills and rent payments, mortgage relief, lump-sum payments to households (i.e. so-called ‘helicopter money’), loans and loan guarantees to businesses, as well as equity investments by governments in distressed companies.
These measures all proceed from the urgent need to prevent a catastrophic economic collapse that would have dire human, social, and health consequences. While the trade impact of these measures may not be a prime concern of governments at present, experience from the crisis of 2008-09 suggests that poorly designed stimulus packages can have negative, long-lasting consequences for global trade and national welfare. Although there is an urgent need to deploy measures quickly, care should also be taken to ensure that today’s stimulus does not sow the seeds of enduring trade distortions, including excess capacity, by relying excessively on “beggar-thy-neighbour” industrial investment, support that results in windfall gains for particular firms, and duplicative infrastructure projects. Emphasis could more effectively be placed on measures that benefit smaller businesses, including those operating in services sectors, as well as on investments in strengthening broader healthcare and social safety nets from which everyone benefits to kick-start final demand after the immediate crisis, reduce excess savings, and rebalance the global economy.1
Support is most beneficial when it is transparent, time-limited, proportionate, and non-discriminatory