The COVID-19 pandemic, which has brought about a downward revision of economic growth prospects and asset prices is a good reference point of how an economy can be thrown off plan.

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Bernard Otabil Business News Jun - 26 - 2020 , 21:11

So far, the aggregate push on efforts to reverse the tide of economic shocks brought about by the COVID-19 pandemic seems to be tilted towards policies aimed at broadly improving government finances, to serve as a catalyst for economic rebound.

This is understandably so because governments play a lead role in economic activities of every country, and even provide the financial backstopping function when the economy hits a spot of bother.

It is the significant leadership role by governments that drives the recovery process whenever an economy is in recession. Thus, positive actions by the government is always the catalysts for household and business activities.

That catalytic effect is necessary in all situations, and even more so during a period of depressed economic activity, such as the social and economic effects brought about by the current coronavirus.