Data-analysis-based discussion on COVID-19 Pandemic Shocks to the Economy and Policy Responses: Cases in the United Kingdom

Abstract

This article analyzes the macroeconomic impact of the COVID-19 pandemic on the UK and the government's response measures by comparing original data and building regression models with STATA. The British economy was stable before the pandemic. However, the outbreak of COVID-19 has plunged the British economy into a massive recession. The British government and the Bank of England have formulated a series of measures to address the negative impact of the pandemic on the economy. The empirical results for one of the monetary policies show that the Bank of England policy has a significant effect on stimulating financial markets and preventing economic recession.