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A case-study oriented analysis of the demand-side policies to reduce cyclical unemployment in the 2008 financial crisis and their potential effectiveness in a post-COVID US economy

Author

Listed:
  • Kakade, Ameya
  • Roongta, Dhruv
  • Haribalaraman, Shravan
Abstract
The Great Lockdown, a severe pandemic-induced economic recession, has resulted in record-high levels of unemployment, last seen in the 2008 financial crisis. In response to this concern, this paper aims to formulate ideal policies to combat cyclical unemployment in a US economy following the onset of the coronavirus. As several policies have already been implemented, the paper also comments on their potential effectiveness. The Keynesian model is used as a reference, and thus demand-side policies are the central focus. This paper examines the employment-oriented fiscal and monetary policies implemented by the US, UK, Germany, Spain, and Japan during the 2008 financial crisis. It then determines their potential success in the United States, chosen due to its significant impact on the world economy.

Suggested Citation

  • Kakade, Ameya & Roongta, Dhruv & Haribalaraman, Shravan, 2020. "A case-study oriented analysis of the demand-side policies to reduce cyclical unemployment in the 2008 financial crisis and their potential effectiveness in a post-COVID US economy," MPRA Paper 103747, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:103747
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    File URL: https://mpra.ub.uni-muenchen.de/103747/1/MPRA_paper_103747.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Case Studies; Cyclical Unemployment; Demand-side Policies; The 2008 Financial Crisis; The Great Lockdown; The United States of America;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • E0 - Macroeconomics and Monetary Economics - - General
    • H0 - Public Economics - - General

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