11/07/2020
Corona virus :- _WHAT CAN GOVERNMENT DO TO REDUCE ECONOMIC PAIN_
In the advance scenarios,there will be a need for a strong policy response at the macro level to contain the damage.
Below is a selection measure directed at stimulating incomes and alleviating liquidity crunches.
Some of them have already been implemented,mostly in the ground Zero of Asia and Italy.
Example of possible policy measures
1. Targeted measure:Healthcare/ Confidence
_Pay bonus for health care workers_ ( Singapore),
_One month salary donated by political leadership in solidarity (Singapore).Provide_ a _small amount of Face mask to all house holds(and discourage them from using it as long as they are healthy).Singapore_
2.Targeted Fiscal measure : _Households_
_Cash payout to every citizen above 18years of age of more than_ _USS 1000(Hong Kong) ,Support for uninsured households for medical expenses._
3.Targeted measures:Firms
_Subsidize short term employment_ _scheme(Germany),Accelerated depreciation_ of _firms(Germany),Sector specific financial sector for_ _tourism,Accommodation and aviation (Singapore),Reduction in profit tax and low interest loan_ _for small and medium sized firms(Hong Kong)_
4.Targeted Measures: Monetary / Banking _Targeted liquidity provision bank funding conditioned on bank lending to SME's.Liquidity support to General bank_ .
5.General Fiscal Stimulus package,Large and coordinated G20 and EU level
_Emergency of Tax reduction,Suspension of payment of social security,increase spending_
6. Global regional disaster insurance/emergency funding
Now the question is what about the Government of your country,any Economic policy to reduce economic pain.😥😥
Any thought?
am CMR.🅱️🅰️W #
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