Economics on coronavirus. Mathematics & Economics Research Paper

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Economics of Coronavirus
In December 2019, the then-unknown coronavirus began in the Chinese province of Hubei. The Chinese government reacted by imposing restrictions that constrained the movement of individuals including quarantines across the nation. Soon, the virus spreading to other countries, forcing them to take similar measures.
Supply Chain Disruption
Globalization has increased, causing the world’s supply chains to be more interconnected. Further, emerging market economies markets have recently been accounting for a greater proportion of the global gross domestic product. This has seen products passing via more phases before eventually reaching the final consumer. COVID-19 has caused national lockdowns, ranging from the closing of airspaces to national borders. The result has been unprecedented disruptions of a majority of economies, especially on their supply chains (Besson). The disruption has caused a strain on the world’s supply chains, including for essential products like food. According to de Backer (2013), both world trade and production are increasingly structured around global value chains (GVCs). Companies ship raw materials from all over the world and assemble them in different locations. The final products are exported to different countries around the globe. For most of the goods, China has been the heart of GVCs, due to its processing and assembling capability. COVID-19 has disrupted GVCs such that exports from countries like China have drastically reduced. The disruption in the supply chain has decreased the number of goods reaching consumers all over the world.
Pandemic Fiscal Policy
Government spending would be critical in combating the spread of the disease. Governments around the world must work towards slowing the spread of COVID-19. According to Georgieva, offering the right incentives to businesses and funding federal agencies would be critical in dealing with the pandemic. Additionally, governments need to initiate disaster relief by assisting individuals and businesses that have been affected by the shutdown (Vinelli, Weller and Vijay). The disease has so far caused economic losses. Most of the households did not have cash deposits before the disaster. Similarly, individuals have been rendered unemployed. Most of the small- and medium-sized businesses are unable to survive. Hence, government spending through a disaster relief would enable both people and businesses to navigate the tough economic challenges.
Pandemic Monetary Policy
The disease has triggered an economic downturn which is of uncertain duration. In the U.S., the Federal Reserve needs to undertake various monetary policies to limit the damage of the pandemic on the economy. Firstly, the Fed should cut the federal ...