By Shristi Khadka

Multidimensional effect of Covid-19| Economic dimension

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There is a strong connection of pandemic in the global market and especially during lock down the negative impact is  massive. The pandemic has mainly touched major parts like :-Risk of spread, consumption and employment interaction. There is joint dynamics between pandemic, aggregate consumption and aggregate labor in the economy. People's consumption and employment decision is highly affected by the pandemic.

People are likely to avoid risks and decrease labor hour. Although basic consumption and employment of front line workers like health service providers, police etc. are persistent. People are exposed to the virus during employment, supply and purchasing. Pandemic cause recession in economic growth due to decreased consumption and labor supply. Supply and demand operate to generate a large, persistent recession causing a shrink in GDP (Gross Domestic Project). During such unfortunate situations, public revenue also decrease. Basically there is shrinkage in public budget, resources,human resources mobilization, supply and consumption.

What should be the government approach after the lock down?

  1. Ensure minimal human loss and suffering
  2. Policy makers should be focused on twin objective, agriculture oriented and human resource mobilization
  3. Preventing shrinkage of GDP as much as possible
  4.  Lock down extension for long run as solution should be avoided
  5. Implementation of optimal containment policy
  6. Subsidize should be given to investors and businessmen
  7. Fiscal annual budget should address the unemployment problem
  8. Macroeconomic policy should be adopted
  9. Involvement in maximum monetary activities
  10. Urbanization should be firmly sustained
  11. Saving the recession from supply side that can decrease the price on demand side ultimately controlling inflation in the society
  12. Fixing of loan that can be provided to monetary institutions
  13. Huge funding on public health preparedness
  14. Collaboration of government and private sector 
  15. Maximum focus should be given for economic restructuring
  16. Policies should  focused progression of multidimensional sectors.

Public health intervention are very cost effective for long run. On surface level, it has massive effect on employment opportunities, income, overpopulation, people with low income jobs and developing country which can ultimately lead to more inequality and poverty so any decision my the government is very crucial to rejuvenate the economy.