DECODE_Issues_Unfolded
DECODE_Issues_Unfolded
Decode
EP 6 || ECON TALK|| To PRINT or Not To PRINT || DEFICIT FINANCING
12 minutes Posted Jul 25, 2020 at 7:37 am.
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Episode 6 on ' TO PRINT OR NOT TO PRINT' delves into the debate over direct deficit financing by RBI. 

1) What is the deficit finance mechanism? 

2) Why is the Govt contemplating on the direct monetization of debt by RBI? 

3) Is the money from RBI really free money? 

4) What are the concerns with regard to the process? 

Will, it led to hyperinflation? Where and how should the Govt. spend the money? 

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References :  

1. https://www.linkedin.com/posts/raghuram-rajan_monetization-neither-game-changer-nor-catastrophe-activity-6664154377692958721-ples (important) 

2. https://www.spglobal.com/en/research-insights/articles/the-missing-piece-in-indias-economic-growth-story-robust-infrastructure 

3. https://www.financialexpress.com/opinion/covid-19-affect-on-indias-rating-it-is-not-clear-just-what-will-drive-a-sustained-recovery/1988918/lite/ 

4. https://www.ideasforindia.in/topics/macroeconomics/the-covid-19-shock-learnings-from-the-past-addressing-the-present-i.html (important) 

5. https://www.thehindubusinessline.com/opinion/monetising-the-deficit-is-not-a-good-idea/article31567772.ece# 

6. https://www.bloombergquint.com/opinion/past-fiscal-profligacy-should-not-stop-deficit-monetisation-now 

7. https://www.cprindia.org/news/analysis-economics-paying-covid-19-stimulus-package 

8. https://www.sbi.co.in/documents/13958/3312806/2007201124-Ecowrap_20200720.pdf/8e39aee1-fa33-d97f-f400-72c32aa8334d?t=1595224549468 (important)