This is based on the Covid-19 Pandemic. Is there any role that monetary and/or fiscal policy...

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Economics

This is based on the Covid-19 Pandemic. Is there any role thatmonetary and/or fiscal policy could play? On this respect, describeone action taken by the Federal Government and one action taken bythe Federal Reserve to counter the coming recession. Do you thinkthese actions will be successful? What specific issues are thedesigned to address? What potential problems do you see with theseactions?

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Fiscal Policy The US is facing a increasing epidemic of COVID19 which took the lives of some 46000 Americans and infected more than 828000 people in all 50 states In response the US has introduced a number of initiatives including travel bans social barriers declaration of state of emergency closing of schools bars and restaurants and increased monitoring US484 billion Paycheck Protection Program and Health Care Enhancement Act The legislation includes i US310 billion for additional forgivable Small Business Administration loans and guarantees to help small businesses that retain workers ii US60 billion to provide Small Business Administration grants to assist small businesses iii US75 billion for hospitals and iv US25 billion for expanding virus testing An estimated US23 trillion around 11 of GDP Coronavirus Aid Relief and Economy Security Act CARES Act The Act includes i US250 billion to provide onetime tax rebates to individuals ii US250 billion to expand unemployment benefits iii US24 billion to provide a food safety net for the most vulnerable iv US510 billion to prevent corporate bankruptcy by providing loans guarantees and backstopping Federal Reserve 133 program v US359 billion in forgivable Small Business Administration loans and guarantees to help small businesses that retain workers vi US100 billion for hospitals vii US150 billion in transfers to state and local governments and viii US499 billion for international assistance including SDR28 billion for the IMFs New Arrangement to Borrow US83 billion Coronavirus Preparedness and Response Supplemental Appropriations Act and US192 billion Families First Coronavirus Response Act See Answer

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