Counterfactual analysis among Covid-19: fiscal and monetary policy for green economic recovery


Liu Z., Lu L., Thanh Tiep Le T. T. L. , Saydaliev H. B.

ECONOMIC RESEARCH-EKONOMSKA ISTRAZIVANJA, vol.35, no.1, pp.5947-5970, 2022 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 35 Issue: 1
  • Publication Date: 2022
  • Doi Number: 10.1080/1331677x.2022.2042710
  • Journal Name: ECONOMIC RESEARCH-EKONOMSKA ISTRAZIVANJA
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, ABI/INFORM, Business Source Elite, Business Source Premier, CAB Abstracts, Central & Eastern European Academic Source (CEEAS), EconLit, Geobase, INSPEC, Veterinary Science Database, Directory of Open Access Journals
  • Page Numbers: pp.5947-5970
  • Keywords: Fiscal- monetary policy, economic recovery, debt spending, America, inflation, CARBON EMISSION PERFORMANCE, DATA ENVELOPMENT ANALYSIS, RESOURCE-BASED CITIES, TECHNOLOGICAL-INNOVATION, CHINA, EFFICIENCY, DEA, SUSTAINABILITY, DECOMPOSITION, FUNDS
  • Süleyman Demirel University Affiliated: No

Abstract

This study examines fiscal-monetary policy links in America across a time period that includes the recent global economic crisis and the COVID-19 emergency. Hypotheses deviate that regulatory administrations are permanent and calculate fiscal policy yearly percentage rate and budgetary regulations which are likely to change between two governments. Additionally, study uses the VAR technique to evaluate the effects of financial initiatives similar to those undertaken in the aftermath of the Covid-19 outbreak. Results discovered that fiscal policy is more successful than monetary policy, and that lavishing on public debt helps increase short-run economic performance. People argue that concerns about a rapid rise in prices as a result of fiscal stimulus are unfounded because the US economy was not close to full employment or full use of funds prior to the global epidemic, and the dissemination processes that could contribute to accelerating rising prices are not always in place. As a result, with the withdrawal of monetary stimulus, the favourable effects on actual GDP and real private expenditure are gone. Long-term mortgage rates have risen, money invested has decreased, and prices have risen, raising concerns about the banking system's inflationary tendency.