Impact of Covid-19 on Interest Rates

Authors

  • Lo Yi-Wei Department of Economics, National Cheng Kung University, Taiwan

DOI:

https://doi.org/10.47616/jamrems.v1i1.7

Keywords:

Interest Rates, Inflation, Export, Import

Abstract

The global economy is experiencing a crisis due to the Covid-19 pandemic, the stock market index has collapsed. The rupiah exchange rate against the USA dollar weakened this was due to the large number of foreign investors leaving the Indonesian financial market, the stock market plummeted. The banking sector can carry out an economic stimulus given restructuring authority for all credit or financing without requiring restrictions on the credit ceiling or type of debtor, especially debtors for MSMEs and informal workers. The economic stimulus that needs to be maximized is prundential monetary and macro policies through lowering interest rates and maintaining stability in the rupiah exchange rate. Budget relocation is also enforced to maintain the availability of basic foodstuffs for the community, which has increased due to panic buying or market panic. Also providing assistance to increase people's purchasing power.

References

Baldwin, R., & Weder di Mauro, B. (2020). Economics in the Time of COVID-19.

Bonoli, G. (2010). The political economy of active labor-market policy. Politics & Society, 38(4), 435-457.

Douglas, M., Katikireddi, S. V., Taulbut, M., McKee, M., & McCartney, G. (2020). Mitigating the wider health effects of covid-19 pandemic response. Bmj, 369.

Clemens, J., & Veuger, S. (2020). Implications of the COVID-19 Pandemic for State Government Tax Revenues (No. w27426). National Bureau of Economic Research.

McKibbin, W. J., & Fernando, R. (2020). The global macroeconomic impacts of COVID-19: Seven scenarios.

Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., ... & Agha, R. (2020). The socio-economic implications of the coronavirus pandemic (COVID-19): A review. International journal of surgery (London, England), 78, 185.

Ramelli, S., & Wagner, A. F. (2020). Feverish stock price reactions to covid-19.

Rosenbaum, L. (2020). Facing Covid-19 in Italy—ethics, logistics, and therapeutics on the epidemic’s front line. New England Journal of Medicine, 382(20), 1873-1875.

Downloads

Published

2020-08-14