close
Breaking news

A new line of argument has already come to dominate the public sphere: it’...read more The government has gone one step further to detect community spread of the coro...read more The government has issued an order to abolish the six allowances, including the...read more Aarogya Setu application launched by NIC is aimed to track COVID-19 affected pe...read more SEOUL| South Korea’s unemployment rate was unchanged in April as the coronavi...read more Amid the outbreak of Corona pandemic in the country, Indian government has been...read more Prime Minister Narendra Modi in his address to the nation on Tuesday indicated ...read more Corona infection in the country is taking a macabre form. So far, more than 74 ...read more Congress General Secretary Priyanka Gandhi Vadra has written a letter to UP Chi...read more On Tuesday, Prime Minister Narendra Modi announced a package of Rs 20 lakh cror...read more

Monetisation Cannot Be Everlasting : Raghuram Rajan

Raghuram Rajan

Former RBI governor Raghuram Rajan has taken over RBI for buying government debt on the back of his liquidity saying that it cannot be a lasting solution.

Speaking at a conference organised by Singaporean lender DBS Bank, the former RBI governor said “the RBI has been expanding its balance sheet and it has been buying government debt. but effectively, in that process, what it is doing is borrowing from the banks at the reverse repo rate and lending on to the government.”

He disagreed to the “modern monetary theory” which are being followed by emerging markets, saying that there are no such free lunches.

It is noteworthy that monetisation of the fiscal deficit is one of the suggestions put forth by a slew of economists and analysts as aprescription to tackle the current environment.

Story Page

Download Our Mobile App