QUESTION: Discuss fiscal and monetary policy responses to the COVID-19 pandemic in Ireland and internationally.
Your answer should include a discussion of the following:
1. What is fiscal policy?
2. What fiscal policy tools could be used in response to the economic impact of the COVID-19 crisis in Ireland and internationally?
3. What effects do you think these fiscal policy tools might have?
4. How might the government finance its fiscal policy stimulus?
5. How might monetary policy be used to stimulate economic activity in Ireland and internationally?
6. What monetary tools, instruments or measures might the central bank use?
Fiscal. The government has adopted two support packages for people and businesses affected by the COVID–19 pandemic of a combined size of Lek 45 billion (2.8 percent of GDP) consisting of budget spending, sovereign guarantees and tax deferrals. … The government will bear the interest costs