NEW DELHI: Raghuram Rajan, former Reserve Bank of India governor, waded into the debate over monetisation of government's debt, given the covid-19 pandemic and the resultant lockdown has ravaged the economy which would require massive stimulus to get back on track.
Monetisation is neither a game changer nor a catastrophe in abnormal times, Rajan, now professor at the University of Chicago Booth School of Finance, said in a post on his LinkedIn account. "It helps a little at the margin, but does not solve the government’s fiscal problems nor does it lead to runaway inflation." But Rajan was clear that the government should be concerned about protecting the health of the economy and should spend what is needed. "...It should also worry about
Read more on livemint.com