Abstract
Research background: The world economy is currently affected by the devastating effects of the global COVID 19 pandemic, reaching the Great Depression of the 1930s. The economic policies of the affected countries are currently focused on short-term measures on the aggregate demand side. To this end, the growth of the public finance deficit is being prepared in the area of fiscal policy, which will ultimately deepen the indebtedness of national economies. If this economic policy is to be sustainable in the long term, measures on the aggregate demand side must be accompanied by measures on the aggregate supply side. Purpose of the article: The purpose of this article is to determine how the current globalization processes affecting the supply and demand sides of selected national economies will be affected in the short and long term as a result of the global COVID 19 pandemic. Methods: A description of the AS - AD model will be performed, covering both short and long periods, and then a description of the impact of globalization processes on aggregate supply and aggregate demand. This will be followed by an analysis of the expected economic and social impacts of COVID 19 on individual globalization processes affecting the supply and demand sides of selected national economies and economic units. Findings & Value added: The article will help to find a systemic approach to the recovery of national economies affected by the effects of the global pandemic COVID 19 through the prism of the AS - AD model.
Highlights
Due to the introduction of anti-epidemiological measures in individual national economies, the world economy is currently going through the largest economic slump after World War II, comparable to the Great Depression of the 1930s, because of the COVID coronavirus epidemic
If, according to Woodward [11] who considers economic globalization to be a decisive phenomenon of the entire globalization process, we focus our attention in this direction, the globalized economy covers the single world market
If we summarise the above-mentioned analysis, one can conclude that the impact of COVID 19 on the globalization processes will be reflected in a decline in aggregate supply and aggregate demand
Summary
Due to the introduction of anti-epidemiological measures in individual national economies, the world economy is currently going through the largest economic slump after World War II, comparable to the Great Depression of the 1930s, because of the COVID coronavirus epidemic. One of the possibilities offered by the economic theory in examining various factors affecting individual national economies is the use of the AS-AD model which analyses the examined factors according to whether they affect the supply or demand side of economies This model takes into account the fact whether the factors under consideration act in the short or long term. Expansionary monetary policies result in the strengthening of inflationary pressures through the growth in money stock and the decline in interest rates In order that these demand-side stabilisation policies do not to lead to a macroeconomic imbalance, they must be accompanied by measures on the aggregate supply side in the medium and long term. The third part of the paper will analyse the expected effects of COVID on individual globalization factors affecting the supply and demand sides of selected national economies and economic units. The article will contribute to finding a systemic approach to the recovery of national economies affected by the effects of the COVID-19 global pandemic through the prism of the AS-AD model
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