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(1/n) We @CFASocietyIndia are delighted to host a talk between @wbmosler (co-developer of Modern Monetary Theory) and Dr. Anantha Nageswaran (Member, PMEAC). I am looking forward to moderating the discussion on a very pertinent topic.
Register here: https://rb.gy/opbrgp ">https://rb.gy/opbrgp&qu...
Register here: https://rb.gy/opbrgp ">https://rb.gy/opbrgp&qu...
(2/n) About a year back I had written on why MMT, which originated in the developed world, will soon coming knocking at the doors of developing countries like India. Due to Covid19 and its economic fallout, this has happened earlier than anticipated. https://www.thehindubusinessline.com/opinion/is-modern-monetary-theory-worth-a-try/article28830498.ece">https://www.thehindubusinessline.com/opinion/i...
(3/n) The discussion on MMT is timely as we have recently seen a flurry of opinions on MMT in India and how we should finance our Covid19 economic stimulus. A while back, @sashi31363 argued why India needs to take MMT more seriously. https://www.livemint.com/opinion/online-views/why-modern-money-theory-needs-to-be-taken-seriously-11572886983987.html">https://www.livemint.com/opinion/o...
(4/n) The team at RaboResearch put out a detailed piece on "Should India Print Money To Fight Covid-19?" The write up provides a detailed explanation of whether the authors think the theory is applicable to India. https://www.bloombergquint.com/bq-blue-exclusive/should-india-print-money-to-fight-covid-19">https://www.bloombergquint.com/bq-blue-e...
(5/n) @Sabya_K in his co-authored piece argued that past fiscal profligacy should not stop deficit monetisation and explained different mechanisms for such monetisation. https://www.bloombergquint.com/opinion/past-fiscal-profligacy-should-not-stop-deficit-monetisation-now">https://www.bloombergquint.com/opinion/p...
(6/n) Dr. Anantha Nageswaran along with @teasri argued why long before the term “MMT" was coined, India has effectively adopted the MMT framework with Indian characteristics since the 1980s. https://www.livemint.com/opinion/columns/india-should-give-up-the-fear-of-inflation-and-monetize-its-deficit-11595259990569.html">https://www.livemint.com/opinion/c...
(7/n) For those interested in a detailed reading of the argument above, @teasri& #39;s paper "Using Fiscal Policy to Alleviate the Job Crisis" can be accessed here.
https://cse.azimpremjiuniversity.edu.in/wp-content/uploads/2019/04/SWI2019_FiscalPolicy_Thiruvadanthai.pdf">https://cse.azimpremjiuniversity.edu.in/wp-conten...
https://cse.azimpremjiuniversity.edu.in/wp-content/uploads/2019/04/SWI2019_FiscalPolicy_Thiruvadanthai.pdf">https://cse.azimpremjiuniversity.edu.in/wp-conten...
(8/n) @PallaviNahata in her summary of Raghuram Rajan& #39;s keynote address at the DBS Asian Insights Conference highlighted the limit to RBI& #39;s monetisation of government debt and the cost to the country& #39;s financial sector of such monetisation. https://www.bloombergquint.com/business/how-long-can-rbi-monetise-government-debt-raghuram-rajan-weighs-in">https://www.bloombergquint.com/business/...
(9/n) @ananthng had a detailed piece on whether the MMT can come to India’s rescue to help fight the Covid19 economic fallout https://www.bloombergquint.com/coronavirus-outbreak/covid-19-response-can-modern-monetary-theory-come-to-indias-rescue">https://www.bloombergquint.com/coronavir...
(10/n) @dugalira reported that ex-RBI Governor Dr. C. Rangarajan felt that monetisation is inevitable given that such an increase in government expenditure cannot be managed without monetisation of government debt. https://www.bloombergquint.com/business/monetisation-of-government-deficit-may-be-inevitable-amid-coronavirus-disruption-c-rangarajan">https://www.bloombergquint.com/business/...
(11/n) Another ex-RBI governor Duvvuri Subbarao opined on whether deficit monetization is needed when the India government can borrow at low yields from the domestic bond market? https://indianexpress.com/article/opinion/columns/covid-19-relief-package-india-economy-rbi-fiscal-deficit-nirmala-sitharaman-duvvuri-subbarao-6430542/">https://indianexpress.com/article/o...
(12/n) I would have missed several other opinions on the topic of funding India& #39;s deficit. Needless to say, this is a very important discussion that will guide economic policy-making in the future. Do register and spread the word on the event!
