Economic Recovery from Coronavirus Pandemic Crisis: Suggestion Macroeconomic Policies in Knowledge Economic Era to Re-Rise Growth in USA, UK, and Egypt

Abstract

Attalla Abo Saif Abadeer and Gaber MM Abdel Gawad

This paper aim to suggest the best macroeconomic policy to maintenance economic recovery in USA, UK, and Egypt with and after coronavirus pandemic period, and achieving high economic growth in this three countries as it was before the pandemic and better. So it suggested deferent policies according to the differences among the three countries, with respecting to the statues of USA, and UK as advanced countries, and Egypt as a developing country. We used theoretical and quantitative analysis with getting experience from exiting of the previous recessions, and re-visiting to Taylor principle and rule especially in using interest rate in both short-run and long-run. So we assure on the importance of technological changes through innovation and R&D to keep on autonomous growth in advanced countries in longrun as well as in Egypt, and increasing nominal federal funds rate to 0.7% to reach real federal interest rate in U.S.A to 1.35% in the short-run, rising real interest rate by 0.2% in UK, to become 2.2% or suppose the autonomous component of the real interest rate ( ṝ = 1.2) in short-run in UK, and reducing nominal interest rate in Egypt to 10.3% in short-run. This will lead to achieve the goals of the study and maintenance on economic recovery and rising growth of GDP in USA, UK, and Egypt.

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