Author(s)

PANG Ho Lam Alex ¹

Affiliation(s)

¹ School of Finance, Shanghai University of Finance and Economics, Shanghai, China

Corresponding Author

PANG Ho Lam Alex

ABSTRACT

This article delves into the far-reaching implications of the COVID-19 pandemic on the global economy and trade, along with the subsequent adoption of expansionary monetary policies by central banks across the world. The pandemic has unleashed a wave of economic downturns worldwide, compelling central banks to consistently reduce interest rates and implement exceedingly accommodating monetary measures to alleviate its profound impact. However, these policies are not without their own set of uncertainties and risks. Heightened apprehensions regarding inflation and income inequality have emerged as significant concerns accompanying the pursuit of ultra-loose monetary policies. As the global community grapples with the multifaceted ramifications of the pandemic, policymakers face the challenging task of striking a delicate balance between stimulating economic recovery and addressing the potential repercussions of prolonged loose monetary conditions. It is crucial to consider these complex dynamics and devise prudent strategies to navigate this uncharted territory effectively.

KEYWORDS

COVID-19 pandemic, global economy, trade, central banks, expansionary monetary policy, economic recession, interest rate cuts, ultra-loose policies, uncertainty, risks, inflation, income inequality

CITE THIS PAPER

PANG Ho Lam Alex, The Impact of Expansionary Monetary Policy on the Economic Environment during and after an Epidemic Era: Analysis of Effects and Implications. Financial Engineering and Risk Management (2024) Vol. 7: 32-39. DOI: http://dx.doi.org/10.23977/ferm.2024.070106.

REFERENCES

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[3] Barro, R. J., & Gordon, D. B. (1983). A positive theory of monetary policy in a natural rate model. Journal of political economy, 91(4), 589-610.
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