InvestorQ : Do you see the possibility that RBI may have to monetise the deficit of the government in a big way?
NISHA Nayak made post

Do you see the possibility that RBI may have to monetise the deficit of the government in a big way?

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8 months ago
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According to a report by Bank of America, the RBI may end up monetizing up nearly Rs.700,000 crore of the stimulus package. Monetizing is when the debt of the government is directly taken up by the RBI, which is equivalent to printing fresh notes and is considered inflationary as it expands the money supply in the economy. The BOFA report estimates that the government may manage to fund nearly two-third of the stimulus with the balance one-third left to be funded by monetization of deficit.

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