Monetary Policy of the State in a Recession

Abstract

The coronavirus pandemic and measures for curbing it have a serious negative impact not only on people’s health, but also on their well-being. Countries are experiencing a decline in GDP, rising unemployment and poverty. Many governments are trying to support businesses and individuals through various fiscal and monetary measures. The COVID-19 pandemic reached Ukraine when the national economy was already in poor condition. The effects of the recently introduced quarantine, including slowed or halted production and declining trade, can only worsen the situation. The government does not have sufficient economic resources to get out of the near-term crises in both the healthcare and the economy. The way forward is likely to include, in addition to international aid, not only short-term measures to mitigate the immediate effects of the pandemic, but also long-term planning to build a more robust economy and its «inoculation» against future shocks. The relevance of the research topic is based upon the matter that governments of many world countries pay enough attention to the problem of development of the national economy and stimulating the growth rate of the economy. Of course, it is difficult to imagine the development of the economy without a fundamental base that will be included in the financial system of the country. The basis of effective operation of the financial system in the country’s economy are such elements of monetary policy, using which it is possible to ensure a steady pace of economic growth.

Keywords

• monetary policy
• coronavirus pandemic
• crisis
• the state regulation