Economic policy as a tool to eliminate the effects of the global economic crisis

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.