Answer to Question #310761 in Macroeconomics for geoffroy

Question

Could you make a list and provide a brief description of some measures adopted by governments (/central banks) worldwide to support economy during Covid-19 pandemy? Explain the logic behind these monetary/fiscal- policy instruments using IS-LM model.

Answer 1

• Health package of around Af 10.9 billion, of which Af 2.6 billion on building hospitals and provincial clinics.

• The social package of around Af 14.7 billion, of which Af 2 billion on the bread distribution program and Af 12.7 billion on the World Bank supported social distribution program.

• Transfers to provinces to finance Covid-19 response of about Af 1.3 billion.

• Support to agriculture and short-term jobs of about Af 5.2 billion and Af 1.0 billion.

• Health package of Af 2.4 billion.

• Social package of Af 8.9 billion.

• Other Af 3.3 billion.