Public Policy in the aftermath of COVID-19 Pandemic

Despite a sudden halt in most economic activity in 2020, the world economy is returning to its pre-pandemic levels, showcasing signs of stability and recovery. This can directly be attributed to the economic policies that central banks and governments implemented at the height of the pandemic with the sole objective of keeping the economies afloat. However, many such policies or the scale of implementation can be considered unconventional in either nature or scale of implementation. Carrying significant implications for the immediate trajectory of the global economy and the long-term stability, it is essential to discuss the impact on current economic indicators, the underlying causes, and their effect on the general population in light of this public policy discourse. The pandemic impacted both the demand and supply sides of the equation. The lockdowns and travel restrictions directly led to a disruption in production and the established global supply chains. In turn, this impacted the demand side of the equation by giving rise to the unemployment rate and causing a dip in economic demand, which triggered a recession that affected many major economies. At this point, when the macroeconomic indicators deter private investment and consumption, government interference in the economy becomes highly essential.