Monetary and Fiscal Policy Measures in the Corona Crisis - Consideration for Germany

Abstract

Crises are often forks into the unknown. When it became increasingly clear at the beginning of 2020 that a very serious wave of infection with a new type of virus was developing in the Chinese region of Wuhan, this was initially only of secondary interest from an economic point of view. At most, the supply chains of companies that are based on preliminary products from or sales to this region seemed to be temporarily endangered by these medical problems. No one expected significant macroeconomic effects, even on a global scale. So far, economic crises have only arisen for economic reasons. This context given the monetary policy on a European level and fiscal policy measures on a German governemental level taken to combat the economic consequences of the so-called “Corona crisis” are presented and in addition their usefulness and impact subsequently assessed.