Graduation Year


Date of Submission


Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Richard C. K. Burdekin

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In theory, during periods of economic downturn, economic policy should follow a countercyclical pattern. In this light, following the recent COVID-19 pandemic, monetary policy is expected to be contractionary. However, prior research shows that the cyclical nature of monetary policy can vary significantly across different countries. Research also suggests that these monetary responses differ based on the level of independence a central bank has for decision-making from government influence. This thesis studies the effects of the COVID-19 pandemic on the monetary responses across a panel of 14 countries from January 2018 to August 2022, capturing the impacts of the pandemic. The results suggest that during periods of economic crisis, monetary policy tends to follow fiscal policy in its responses. The effects of central bank independence (CBI) are limited to countries with High-CBI having less inflationary pressure than countries with Low-CBI. Ultimately, the nature of monetary responses is procyclical.