Perspectives on Macroeconomic Policy Issues in the Post-Covid-19 Era

JaeBin Ahn

Abstract

At the onset of the COVID-19 crisis, most major economies could conduct large- scale expansionary fiscal polices thanks to the ultra-low interest rate environment. As such, the prospect of sustained expansionary fiscal policy to help economic recover after the COVID-19 critically depends on the movements of global interest rates going forward. This paper overviews the extent to which major economies increased debt levels in fighting against the COVID-19, and discusses the implications of the recent steep rise in US CPI inflation rate and the likely US monetary policy normalization.

Keywords COVID-19․fiscal policy․government debt․borrowing costs․US inflation․US monetary policy

1.JaeBin Ahn