New Delhi: Batting for pump priming of economies across the world, International Monetary Fund chief economist Gita Gopinath on Wednesday said while a substantial fiscal stimulus package will push up the fiscal deficit and debt-to-GDP ratio of economies, lack of proactive fiscal policy by governments could put them in worse place with collapse of economic activity. “If you don’t do what you are doing now, you can actually end up in worse situation because economic activity will collapse so severely that your debt-to-GDP will be even worse.
So things could be worse if you didn’t do what is needed right now. I think that is something everybody recognizes at this point," Gopinath said in an interview with "The Daily Show" host Trevor Noah.