Ankit Kumar and Chetan Subramanian
2020
Working Paper No
612
Body
This note proposes policy options to address the massive financing deficit faced by both
government and industry due the current COVID pandemic. Broadly, we suggest that foreign
currency borrowing, and money financing should be seriously examined to finance government
spending. For the case of industry, we make the case for the RBI to carry out large scale buying
of corporate bonds to alleviate the credit crisis in the private sector.
Key words
Money Financing, Government spending, Quantitative easing.
WP No. 612.pdf
(627.77 KB)
Author(s) Name: Ankit Kumar and Chetan Subramanian, 2020
Working Paper No : 612
Abstract: This note proposes policy options to address the massive financing deficit faced by both
government and industry due the current COVID pandemic. Broadly, we suggest that foreign
currency borrowing, and money financing should be seriously examined to finance government
spending. For the case of industry, we make the case for the RBI to carry out large scale buying
of corporate bonds to alleviate the credit crisis in the private sector.
Keywords: Money Financing, Government spending, Quantitative easing.
WP No. 612.pdf
(627.77 KB)