In March 2020, the COVID-19 pandemic rocked economies worldwide. Millions of people lost their jobs, and many businesses struggled to survive or shut down completely. Governments responded with some of the largest economic relief packages in history the United States alone spent $2.2 trillion on a first round of relief. So where did all this money come from? Most countries have a central bank that manages the money supply and is independent from the government to prevent political interference. The government can implement many types of economic policy, like decreasing people's taxes and creating jobs through public infrastructure projects, but it actually can’t just increase the money supply. The central bank determines how much money is in circulation at a time. So why can’t central banks authorize the printing of unlimited money to help an economy in crisis? They could, but that’s a short-term solution that doesn’t necessarily boost economic growth in the long-term, and
Hey ! Welcome to Daily tips blog , best place to get informed about latest Gyan, History etc topics.
Comments
Post a Comment