Covid-19 Pandemic: Exploring the Fiscal and Monetary Policies for Mitigating the Socio-economic Impact on Ghana’s Economy

Abstract

The world economy has been thrown into disarray by the Covid-19 pandemic. Countries are attempting to combat the epidemic's economic and social implications by adopting severe measures to stabilize markets, which would include monetary interventions. Bans on social gatherings had a negative societal impact, disrupting social activities such as education, sports, festivals, and religious activities. The economic impact, on the other hand, includes financial losses and job losses in the agriculture, hotel, trade, and industry sectors, as well as a decrease in foreign direct investments. In this paper, we investigate the role of governments in mitigating the socio-economic impacts of COVID-19. We also attempt to examine government fiscal and monetary policy initiatives, as well as how such policies might be sustained. Using Ghana as an example, this study indicates that integrated monetary and fiscal policies save lives by reducing the loss of income and jobs, preventing business bankruptcies, and eventually increasing economic recovery. We propose a CCCRD Model which could serve as a global strategy for governments in the fight against COVID-19. As a result, policymakers must use this as a clarion call and strategically connect resources, people, the environment, and the economy, while also providing enough support in such turbulent times. However, to promote such monetary and financial policies, they must be backed by legislation that could help in enhancing their sustainability.