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Whats a monetary proposal that i can make up for the covid 19 situation ?

Whats a monetary proposal that i can make up for the covid 19 situation ?
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In the present turbulent times when the economy is going through serious shock, following monetary proposals can be used for economy:

  • In the current environment when the economy is slowing, central banks must increase liquidity by cutting their interest rate. In fact, a number of governments along with their central banks have already cut rates to (near) zero, including those in the United States and the United Kingdom

  • Adopt the unconventional approach to monetary policy, known as quantitative easing (QE), which is operationally like open market purchase operations however led on a much bigger scope. The extra holds made by central banks in an arrangement of quantitative facilitating can be utilized to purchase any advantages. Extra save would kick-start loaning, making wide cash development grow, which would in the end lead to an expansion in genuine monetary movement..

  • Government can also intervene in several other markets that are failing for lack of liquidity, including interbank markets and the commercial paper market

  • By expanding the money supply by various means (including helicopter money popularly known in economic parlance), the Federal Reserve as the monopoly supplier of money could give stimulus

  • At present economy is going through both supply shock and demand shock . To reduce the no of businesses failing and rising unemployment , monetary policy measures should also be directed towards giving relaxations to commercial banks and in turn ensuring liquidity is available to the businesses to withheld the period of business lock down and have sufficient liquidity to restart the businesses .

  • Also SME’s and households in the economy will require cash flow support, subsidies and liquidity support to restart the businesses and economy.

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