Why budget stimulus during corona crisis is essential

The unexpected outbreak of coronavirus, which has inevitably changed the social behavior of consumers as well as many corporations, has important implications for the government’s fiscal policy.

Illustrative stock photoIllustrative stock photo (Source: TASR)

In the current economic situation, the lack of macroeconomic response from the fiscal policy could exacerbate the resulting path of the menacing economic slowdown.

Just as encouraging social distancing can help slow down the progress of the virus and flatten the curve of affected people, an effective macroeconomic response from the government is necessary to flatten the negative curve of the economic weakening due to the extraordinary and temporary situation during the virus outbreak.

The example of China, which is gradually re-launching economic activity after 1.5 months of strict preventive measures against the virus, is an important reminder that the economic shock can be temporary and hence requires effective bridging measures especially for small and medium-sized companies, as well as for self-employed tradesmen.

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

Get daily Slovak news directly to your inbox

Top stories

News digest: High-profile arrests and discussion on reopening schools continues

PM Matovič proposes pilot testing for schools. Slovakia will have the very first Slovak ambassador to the EU.

PM Igor Matovič has stepped into the debate about opening the schools for older children.

Another former police president reportedly charged in a corruption case

NAKA charged eight former high-ranking police, SIS and Financial Administration officials.

Milan Lučanský

Matovič could have made comments about the US rather than Mongolia

I am proud of what has been achieved in Slovakia, says Billy Altansukh.

Older children will not return to schools before Christmas

PM Igor Matovič still wants some pupils to return, he proposed a pilot testing plan.

The school in Trebišov.