The COVID-19 virus has been a major worldwide economic shock especially in the business

sector. Many businesses has suffer, many persons have lost their jobs and many people have lost
their lives sadly in this pandemic.
However the government can combat the economic implications of COVID-19 by using two
measures the monetary policy and the fiscal policy.

The monetary policy involves the controlling of money supply and interest rates by the central
bank. As a result of this global pandemic the government can use the monetary policy to provide
excess liquidity to the economy thus to increase money supply.
It involves the central bank asking the commercial banks to be lenient to lend household and
firms money at a low interest rate. “BOG asks banks to: reduce interest rates, defer loan
payment, waive ATM fees. The letter was sent to head of the GAB, Richard Isava, who is
the Guyana Bank for Trade and Industry (GBTI).The banks that are part of the
association would include Bank of Baroda, Scotiabank, Republic Bank, Citizen Bank,
Demerara Bank, and GBTI.”- Kaiteur News. By taking this action it allows both business and
household to spend on buying essential products. Many persons in Guyana have been buying in
bulks of essential products due to the uncertainty of how long this pandemic will end.

The government has to take massive steps to help the economy and this is where the fiscal policy
comes into place. The fiscal policy involves increasing government spending or reducing taxes.
In many countries the government agencies has funded the health sector: increases in facilities,
supplies, and materials, such as test kits and ventilators, and additional payments to medical staff
in contact with COVID-19 patients thus increasing government spending in the economy. Also
making a hamper of essential products to households that are most vulnerable. “The Civil
Defence Commission (CDC) distributed food hampers to 1,759 households as part of its
work to bring relief to citizens during the current month-long emergency curfew instituted
by the Ministry of Public Health in response to the novel coronavirus disease (COVID-19)
pandemic.”- Stabroek News