Describe Covid-19 Crisis and Fiscal Policy Measures in Germany

Covid-19 Crisis and Fiscal Policy Measures in Germany

1 Introduction

2 Theoretical Foundations

2.1 The role of Fiscal Policy during an economic crisis2.2 Interaction with monetary policy necessary?

2.3 Differences from previous crises -Covid as a supply and demand shock

3 Fiscal Policy Measures by the German government

3.1 Short-time workingallowance

3.2 Liquidity support from the state-owned bank Kreditanstalt für Wiederaufbau

3.3 VAT Reduction and Child Bonusin the Stimulus Package

4 Evaluation and Criticism

5 Conclusion

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