GOVERNMENT’S POLICY IN THE HEIGHT OF COVID-19 PANDEMIC

Abstract

The paper presents an attempt to estimate cost effectiveness of the governments’ arrangements for prevention, limitation and overcoming the consequences of the spread of COVID-19 pandemic, as a result of which nearly quarter of a billion people were infected and almost 5 million died. Epidemic control measures, undertaken by almost all national governments, have ended in 6,7 percent of world GDP lost in 2020 and global fiscal deficit of 13,9% of the collective GDP for 2020. Hundreds of billions of SDR, dollars, yens and euro, additionally issued by IMF and national central banks simultaneously with rate cuts and preferential refinancing caused the growth of broad money supply in 2020 to 145,1 percent of global GDP. All of this could not but influence economics of all the countries. For the purpose of estimation of the consequences of such a policy, we endeavored to interpret governments’ activities as operations of a fictitious business entity (COVID Gov Inc) and explore business model of such a company.