The Economic Effect of Coronavirus in the United States and Economic Policy Responses

The health crisis caused by corona-virus has plunged the United States and the world into confusion and dilemma. It seems that no single country had projected such a terrible ordeal, and hence there were no proper preparations to curb its effects. Many countries are still undecided about how they would handle the economic impacts that would accompany the crisis. Vinelli et al. (2020) present the impact that the virus would have on the economy of the United States and the possible economic policy responses. This discussion would provide a summary as well as a thoughtful response to the article offered by Vinelli et al.

The various aspects that Vinelli et al. has discussed in their article include the assessment of the impact of COVID-19 on the economy; the effects that the virus has had on supply chains and the corresponding effects on the firms; how consumer behaviors have been modified following the spread of the virus; the uncertainties that the virus has caused regarding its effects on the economy; the decline in stock prices and interest rates amidst economic uncertainties; and the five economic principles that would guide the formation and implementation of financial policies following the crisis.

While the authors might have merely wanted the readers to get informed of the current economic situation brought about by the corona-virus, the article has the real aspects that economists should consider when drafting policies that would aid save the case. The writers have successfully provided the various aspects of the economy that would be severely affected. Importantly, the authors have specified the five rules that should be followed when drafting economic solutions associated with the coronavirus crisis. I believe that adherence to the specified regulations would ensure a smooth transition from the effects of the crisis back to typical economic situations.

References

Glaeser, E. L. (2016). The political economy of warfare (No. w12738). National Bureau of Economic Research.

Vinelli, A., Weller, E. C. & Vijay, D. (2020). The Economic Impact of Coronavirus in the U.S. and Possible Economic Policy Responses. Center for American Progress. Retrieved from https://www.americanprogress.org/issues/economy/news/2020/03/06/481394/economic-impact-coronavirus-united-states-possible-economic-policy-responses/