COVID-19: Comparing the National Responses of New Zealand and the United States Using a Keynesian AnalysisPublic Deposited
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This paper investigates whether there is a link between a nation's response to covid-19 and their current/future economic position. It uses New Zealand and the United States as case studies, and has the initial position that, since New Zealand had a more effective response to covid-19 and was able to control the virus at an earlier stage, then they should be in a better economic position, not only currently, but for the future. This is based on the key Keynesian principles of uncertainty, confidence, and investment. However, even though New Zealand has eliminated the virus and been able to completely open the country, compared to the United States, which is still in a battle with covid-19, the current economic data does not support the initial thesis. This could be due to either the economic data yet reflecting New Zealand's success, or the key Keynesian principle of irrationality. A follow up study in the future will be required to tell whether the initial thesis is correct.
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