RBI should not print money to finance fiscal deficit, says top economist4 min read . Updated: 04 Jul 2021, 02:22 PM IST
- There have been calls from various quarters recently that the central bank should print money to finance the fiscal deficit.
- The RBI's monetisation of fiscal deficit means the central bank printing currency for the government to take care of any emergency spending to bridge its fiscal deficit
The RBI should not print money to finance the fiscal deficit as it will lead to fiscal profligacy, eminent economist Pinaki Chakraborty said on Sunday, expressing hope that India will see a faster economic recovery if there is no major third pandemic wave.
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