Recession and Stabilization (COVID Stimulus Globally)

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[...] Such multipliers mean that a dollar spent by the government can lead to a maximum of $2.50 in economic activity, which serves as confirmation that government intervention can be helpful in stimulating economic growth during times of severe recessions. From a Keynesian/Post Keynesian perspective, the government's role is not only advantageous but mandatory, especially with market forces that economies alone are unable to condition the economy to the required level of equilibrium. This standpoint is iterated in varying degrees of success with fiscal policies across different nations managing the pandemic. [...]

[...] Recession and Stabilization (COVID Stimulus Globally) Northeastern Illinois University Recession and Stabilization (COVID stimulus globally) The COVID-19 pandemic triggered the most severe world recession, upon which most countries resorted to numerous fiscal stimulus policies to restore stability and economic growth. The measures undertaken came in different sizes and designs, signalling different national capacities and economic beliefs. The international dimension of this crisis serves as a suitable context for evaluating the efficiency of different economic recovery strategies. As the Keynesian/Post Keynesian framework is primarily built upon the doctrine of active government intervention to address economic uncertainties, it becomes highly relevant in this context. [...]

[...] This viewpoint advocates for spending restraint and a market-led economic revitalization. In conclusion, this paper scrutinized, through a Keynesian/Post Keynesian lens, the effect that the COVID-19 pandemic had globally on the economy and the subsequent stimulus measures, adding a dimension of government intervention in times of economic crises. The analysis showed the positive result of such measures due to the multiplier effect, which underlines the high benefits from matters of harsh fiscal policies. Although the neoclassical critiques have valid points regarding long-term debt and market distortions, the immediate need for stabilization in such unprecedented economic conditions vindicates the Keynesian approach. [...]

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[...] (2020, December). Employment recovery in the wake of the COVID-19 pandemic: Monthly Labor Review: U.S. Bureau of Labor Statistics. Www.bls.gov. https://www.bls.gov/opub/mlr/2020/article/employment-recovery.htm Reuters. (2022, January 20). IMF sees the cost of the COVID pandemic rising beyond the $12.5 trillion estimate. Reuters. [...]