CNBC's Jim Cramer said on Monday that financial turmoil from the coronavirus shows that monetary policy is no longer an appropriate solution.

"This is just the need for fiscal policy," Cramer said on "Squawk on the Street." "Monetary policy is over."

Last week, the Federal Reserve cut interest rates by a half percentage point in response to the growing economic threat from COVID-19.

Cramer has been critical of that decision, arguing the government should actually be stepping up to provide financial help to small and medium-sized businesses that may see significant challenges from the disease's spread. For example, he said Monday, those businesses should have an opportunity to access zero-interest loans.

Cramer spoke as futures on the Dow Jones Industrial Average showed an implied opening drop of about 1,300 points. Futures overnight were halted from falling further after hitting a level known as "limit down."

The Dow tanked more than 2,000 points on Monday, ending the session down 7.79%. The S&P 500 went down over 7% shortly after the open, triggering the first of "three circuit breaker thresholds." Trading was paused for 15 minutes. After trading resumed, the S&P 500 went on to finish the day down 7.6% at 2,746.56.

Oil prices was also plunging Monday after OPEC failed to secure a production cut deal, and Treasury yields are dropping too as investors flock to the perceived safety of bonds. Yields move inversely to prices.

The "Mad Money" host said earlier Monday that the declines in oil prices and Treasury yields "are both unprecedented and exceed the chaos of 2007-2009 today."

The turbulence Monday comes as the coronavirus outbreak continues to spread around the global, sparking increased fear around the disease's economic impact.

There are more than 111,200 confirmed coronavirus cases in the world and at least 3,890 deaths, according to data compiled by Johns Hopkins University.

The U.S. has more than 564 cases, including at least 22 deaths.