Abstract
Research background: The global economy has gone through two major crises since the beginning of the millennium. The first broke out in 2008. The cause was the crisis in the financial markets in the United States. This crisis eventually spread around the world, causing many economies to decline. It remained not only in the financial markets, but also spilled over into other sectors of the affected economies. We are experiencing the second major crisis these days (2020). However, this crisis has a completely different origin. It is a crisis caused by a new type of viral disease. The purpose of the article: Purpose is to compare the measures taken to mitigate the effects of the 2008 crisis with those used in 2020. The article is not just a simple list of individual measures, but a comparison of the time horizon in which it came and to whom it was targeted. The analyzed economy is the Czech Republic and its economic policy. Methods: The article uses the method of analysis and statistical analysis, which is based on data from the CNB, the Ministry of Finance of the CR and the Czech Statistical Office. Data from the CVVM Public Opinion Research Center were used to illustrate the situation. Findings & Value added: Monetary and fiscal policy have relatively limited options in terms of the number of instruments they can use to combat the crisis. However, a difference can be observed in the response of economic policy makers to the 2008 and 2020 crises.
Highlights
A crisis or recession is a natural part of the economic cycle
The Czech National Bank has implemented some monetary policy measures to mitigate the effects of the economic crisis on the Czech economy
The causes were diametrically opposed. It was the irresponsible behavior of American banks, which subsequently triggered first the global financial, the economic crisis
Summary
A crisis or recession is a natural part of the economic cycle. The Bible already speaks of seven good years and seven skinny years. Since Keynes, governments have sought to eliminate downturns in the economic cycle as quickly as possible. They use various economic policy instruments to do so. The second was caused by external shock and the government's efforts to protect the health of the population, even at the cost of great economic losses. At a time of any crisis, economic policy has a whole range of tools it can use to tackle it. Fiscal policy may change the settings of the built-in stabilizers or use individual discrete measures. As part of these measures, it may change tax rates, change the amount of transfer payments or government purchases.
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