The Impact Of Fiscal And Monetary Policies On The Management Of Covid-19 Pandemic In 2 Oecd Countries: An Exploratory Study Of Pre And Post Pandemic Effect

Abstract

This study aims to investigate the role that effective fiscal and monetary policy played in the pre- and post-pandemic management of the COVID-19 pandemic Crisis in two selected OECD countries (Australia and Canada). It also aims to look at how the economies of the aforementioned nations – Canada and Australia – that successfully handled their fiscal and monetary policies throughout the pandemic period helped those nations' economies recover. to poor public service delivery and non-commitment of government to addressing immediate needs/challenges confronting taxpayers. macroeconomic strategies utilized to create strong and sustainable growth while lowering the poverty rate. The exploratory study employed time series analysis to look at the many macroeconomic indicators these nations used to assess the immediate and long-term effects of the economic recovery in the chosen period. The outcome is that hence Fiscal policy alters governmental spending and taxation, which impacts overall demand. These variables affect household income and employment, which in turn affect consumer spending and investment. Money supply in an economy is impacted by monetary policy, which in turn affects interest rates and inflation. Furthermore, our justification is that the policy will have an impact on interest rates and the amount of loanable capital, which would then have an impact on a number of aggregate demand components. To claim a perfect economy, tight or contractionary monetary policy application raises interest rates and decreases the amount of loanable money by reducing two aspects of aggregate demand and supply.