Using IS-LM Model to Analyze the Effects of Covid-19 on Chinese Economy
- https://doi.org/10.2991/aebmr.k.210319.087How to use a DOI?
- Covid-19, IS-LM model, Quarter GDP growth rate, Local Industry, Isolation policy
Covid-19 has affected Chinese economy greatly. Each local industries and companies are influenced by the isolation policy, and people are losing jobs. Because most industries and companies are affected, the GDP growth rate of the first quarter in 2020 have decreased a lot. After discussing how does the quarter GDP growth rate decrease detailed, the theory that coronavirus influenced Chinese economies significantly, will be proved by IS-LM model through accurate data from National Bureau of Statistics and other statistics by using formula equations. Those statistics will show the change of each element of the financial market and goods market, which are corresponding to each variable in the formula of IS-LM model. The changes in these variables give the expectation of how economy changes over time. According to the analysis in this paper, coronavirus has brought huge impact on the net export, the investment inboard and aboard, and the employment as well as salaries, leading to an overall decrease in output and the nominal interest rate. Therefore, both the goods markets and the financial markets are affected through the pandemic, corresponding to the situation in China at the first quarter of 2020.
- © 2021, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Haonan Wang PY - 2021 DA - 2021/03/22 TI - Using IS-LM Model to Analyze the Effects of Covid-19 on Chinese Economy BT - Proceedings of the 6th International Conference on Financial Innovation and Economic Development (ICFIED 2021) PB - Atlantis Press SP - 479 EP - 482 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.210319.087 DO - https://doi.org/10.2991/aebmr.k.210319.087 ID - Wang2021 ER -