After starting pandemic, all economy activities are decreased. That’s why most of business are getting loss, they are unable to pay their loan. Huge number of people are being jobless. In this crisis situation without government support, Businesses cannot be run again in normal way. But government also does not enough money to support them, then how is it possible to come in normal way. Many countries in world, have been different experiences to tackle the crisis. There was great depression happened in the world in 1929, that time most of countries were struggled to handle crisis. To overcome from crisis, they applied Keynesian Principle in economy, who said that interest rate should be decreased and new infrastructures should be made by government. After decreasing interest rate, investment in business would be increased and after build new infrastructures then both activities play role to increase employment. After increasing employment, all economy activities would be heading to normal way. But government does not have money, then how can government increase investment in infrastructures, big question is here.
To run economy activities in normal way, money should be run, but in crisis, money is stopped to run, that’s why problems are created. If we see carefully, real quantity of money is still there, nothing is lost in real, all assets of businesses and money quantity are remaining same but most of businesses are getting lost in their account, because lack of money movement. So, government should think and support how to increase money movement again. To increase money movement, interest rate should be decreased. Extra loan should be issued. Credit facilities should be eased. New infrastructures should be made by government by taking loan from inside country and outside as well. After doing all these activities even situation does not come in normal way then extra money should be printed for increase investment, even central bank does not have assets for back up to new circulate money. In normal situation new money should not be circulated without back of money like gold, silver and foreign currency, over circulate money creates inflation and decreased its own value but in crisis situation to increase movement of money, that kind of action should be applied. After coming normal situation government can collect extra money from market by increasing interest rate, by issue bonds and issue in share of company so many options are available.
In this time, USA and Europe are applying this method, their government also suffering same problem like Nepal, they also cannot collect tax in this situation, they don’t have also reserve money, their budget also made on deficit model like Nepal but how can they able to give extra loan to business, free money to businesses and citizens. They are well known that about how to run and handle economy in crisis situation using monetary policy. For example, in normal situation if government give free money to businesses then they buy some extra products from foreign countries, then our foreign currency would be decreased after decreased our foreign currency then our money would be devaluated that’s why in normal situation, money should not be given to any businesses and poorest citizens without back of money. But in crisis situation, if businesses are given free money by government, they should pay bank loan, tax and normal expenses, by getting this extra money, they cannot create extra demand of products as well as foreign currency, so chances of happen inflation and decreasing own money value are also very low by analysing all possible situation, they have given free money to businesses and citizens as well. This money help to cover loss of account in businesses, in reality nothing is losses. After coming normal condition, they will collect extra money from market by increasing interest rate, issuing bond and share. But why our government cannot apply this simple method, which others countries already have applied in crisis situation. This ideas, they have applied very secretly, they told people that they have taken loan from future budget. Simply we can think that how is it possible to take loan from future. These all story should be made to get trust from people for money philosophy. If trust of people break with money then big problem may be created to run economy activities in right direction. I would like to advise that government should decrease interest rate, provide easy loan and give little bit free money for businesses, then they can pay bank loan, tax, salary of staff and rent and they are able run in normal. When businesses start in normal, then government should create agriculture company by issuing share to people, start to cultivate all possible areas by taking land in lease and build cold stores with sales counters in different place then our vegetables imported would be decreased and our foreign currency would be increased. So that no possible to happen bad situation by using extra money in crisis period. If somebody really is able to understand economy, then this idea can understand. And citizens should give priority to buy domestic products, which help to overcome from crisis situation in short period.
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