Stabilization policy of the state in the post-pandemic period

Saint-Petersburg State University, Faculty of Economics, Universitetskaya emb. 7-9, Saint-Petersburg, Russia

^* Corresponding author: t.kotsofana@spbu.ru

Abstract

Research background: The coronavirus pandemic, which has affected all spheres of society and the economy, has formed new realities and conditions for modern world development. The governments of many countries have faced a choice of how to combine the security of citizens ’ lives and the need to resist the decline in production, employment, and income.

Purpose of the article: The main purpose of the presented article is to study the instruments of stabilization policy during the pandemic and post-pandemic economy and to identify measures aimed at reorienting from ensuring monetary and budgetary stability to expanding effective demand and stimulating the economy.

Methods: To conduct the study, we used official statistics data, the analysis of which allowed us to determine the degree of mutual influence of key parameters of economic development.

Findings & Value added: The results show that in developed countries, support measures by monetary policy instruments are limited, so for the most part, fiscal mechanisms to support the population and business are implemented. In Russia, the opportunities to soften monetary policy with traditional monetary policy measures still retain some effectiveness. However, the current economic policy imposes a forced type of consumer behavior based on making financial decisions in the absence of choice, so such decisions form negative consequences — indebtedness and poverty. In this regard, recommendations are given for the implementation of stabilization policy instruments aimed at reorienting it from ensuring monetary and budgetary stability to stimulating the Russian economy and expanding the monetary base of demand.