You are an economic analyst for a large multinational corporation based in the EU.Your company is one of the dominant players in its industry, employs hundreds of thousands of people, and has a supply chain that stretches over 100 different countries.

The impact of Covid-19 is hitting your company's industry particularly hard and the CEO of the company is deeply concerned about what the potential affects of Covid-19 will have on the future sustainability and profitability of your company and the industry as a whole.The CEO has just come to your office and asked you to prepare a macroeconomic analysis for the Board of Directors.She believes that the company will soon need to make some very difficult decisions around future investment and personnel decisions (i.e. hiring and firing) and the Board of Directors needs to start with a solid understanding of the how the economic landscape will shift in the post Covid-19 world.

Covid-19 has left an indelible mark on the state of the world today.Uncertainty is now the name of the game and there is a lot of more of it now than there was when we started this course.Using the finely tuned economics knowledge that you have acquired prepare an essay outlining the major economic effects that the Board of Directors needs to be made aware of.Your discussion should include but not be limited to the following topics:

Monetary Policy

oWhat will the future setting of interest rates look like? Why?

oShould the company be worried about inflation? Why or why not?

Fiscal Policy

oWhat type of fiscal stimulus measures could be anticipated? How might the measures be related to the firm's operations?

International Trade

oWhat might the future of trade post- Covid-19 look like? With respect to trade agreements, the EU, tariffs, China...etc

oHow might Covid-19 affect the very foundations of the European Union from an economic standpoint?

Financial stability, unemployment and inflation

Debt levels (Savings and investment rates)

The Board of Directors come from a variety of experiences and many are very old and never received a proper economics education.Feel free to provide general background information and contextual knowledge in your analysis (i.e. What is the objective of monetary policy etc...) so as to provide a comprehensive assessment.