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Updated: Dec 11, 2025

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Financing of fiscal response to COVID-19: a pragmatic alternative
1Department of Economics, Monash University, Melbourne, Australia.
Abstract:
As governments around the world, including the Indian government, mount a fiscal response to the Covid-19 crisis, the question of how to finance it has risen to prominence. We argue that the option of the central bank monetizing the additional government debt and then writing it off offers a pragmatic way out.
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