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The COVID-19 pandemic is expected to cause severe impact on the economy than the 2007-2008 recession. Certain steps, maybe in the form of policies have to be taken by the Government. Extending the deadline the financial year for 2019-2020 might also be a good idea as it will act as a cushion for the companies. Several countries have already taken this decision. For the rest of this article I will explain the remaining possible targeted policies with India as an example. India extended its Financial Year 2019-2020 deadline from April 31, 2020, to June 30,2020. But extending the deadline alone will not create a major change. Certain more steps have to be taken. Since, already India has been fighting with stagflation for nearly a year it will be very difficult for the Government to take any policies without further investigation. Stimulus packages were announced by the Indian government amounting to nearly rupees 20 lakh crores, but unfortunately it failed to meet the demand side obligati...

Protectionism reduces current account deficit COVID-19 Recession : Things get costlier or cheaper ? The COVID — 19 recession, could be a major global recession which arose as an economic consequence of the continued Coronavirus pandemic. Since World War 2, coronavirus pandemic could cause the worst global recession. Most of the countries saw a falling GDP from January to March 2020, because the economic impact of coronavirus began to hit. For April to June official figures haven’t been published yet, but they’re likely to point out even bigger falls, this can mean the second quarter of negative growth, confirming that much of the globe is in recession. In such a situation, what can a government do to beat its economy from such an oversized recession? In this article, we are going to know whether we can use protectionist policies during this recession. Protectionism The practice of following protectionist trade policies is Protectionism. It is an economic policy that is imposed by the g...

There have been many consequences because of COVID-19. One such consequence is the disruption in the supply chain. At the start of the pandemic when people, like factory workers got infected they were quarantined and treatment was given. At the first stage when one employee was affected the company allotted additional work to the non-infected factory workers. But after some time since many people got infected the factories were forced to close because of the shortage of labor. Salaries were also not given in the short term and many people were also laid off. This condition was prevalent at the start of the pandemic and is continuing even now in some parts of the world. Since labor is a variable cost in the short term the employers can lay off the employees but they will also incur costs such as capital which are fixed costs in the short term. Some industries were affected even when they had large supply, like the milk industry. A cow gives milk daily and milk supply is almost at the sa...