Showing posts with the label consequences

The consequences and ways to control the economic shock of Corona

Corona is one of the few crises that has shaken both supply and demand shocks and limited both. Now the demand shock is much more important and policies should be more focused on maintaining demand and reducing demand shock. Creating money in the short term to maintain demand and help those affected by Corona can have a positive effect and few negative effects. Of course, it should be noted that this policy should continue in the short term and for the next four months at most Inflation is important, but now and in the current situation, it is not our priority and we should not worry about it. Reducing demand can have multiplier effects and must be controlled Iran's debt bond market is small and domestic. Its interest rate should be high enough to encourage people. Its competitor is the capital market. Debts can help raise funds to deal with corona, but not much We need to make sure that Corona's impact on the economy slows down in the next three months. I don't think it wi