| 000 -LEADER |
|---|
| fixed length control field |
01313pab a2200181 454500 |
| 008 - FIXED-LENGTH DATA ELEMENTS--GENERAL INFORMATION |
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| fixed length control field |
180718b2000 xxu||||| |||| 00| 0 eng d |
| 100 ## - MAIN ENTRY--PERSONAL NAME |
|---|
| Personal name |
Rao, M.J. Manohar |
| 245 ## - TITLE STATEMENT |
|---|
| Title |
Fiscal deficits, interest rates and inflation: assessment of monetisation strategy |
| 260 ## - PUBLICATION, DISTRIBUTION, ETC. |
|---|
| Date of publication, distribution, etc. |
2000 |
| 300 ## - PHYSICAL DESCRIPTION |
|---|
| Extent |
p.2637-645 |
| 362 ## - DATES OF PUBLICATION AND/OR SEQUENTIAL DESIGNATION |
|---|
| Dates of publication and/or sequential designation |
22 Jul |
| 520 ## - SUMMARY, ETC. |
|---|
| Summary, etc. |
The relationship between budget deficits, money creation and debt financing suggests that interest rate targeting and inflation control are both monetary and fiscal policy issues. The paper formalises these links within two analytical frameworks, static as well as dynamic, which by highlighting the concepts of the `high interest trap' and the `tight money paradox', respectively, suggests that, for any given deficit, there exists optimal levels of monetisation and market borrowings. The model is then applied to evaluate the implications of the union budget 2000-01 and the results indicate that unless government borrowings are reduced substantially, and about 40 per cent of the deficit is monetised, the inflation rate as well as the interest rate could be much higher than what they fundamentally ought to be. - Reproduced |
| 650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM |
|---|
| Topical term or geographic name entry element |
Fiscal policy |
| 650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM |
|---|
| Topical term or geographic name entry element |
Inflation |
| 650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM |
|---|
| Topical term or geographic name entry element |
Interest rates |
| 773 ## - HOST ITEM ENTRY |
|---|
| Main entry heading |
Economic and Political Weekly |
| 909 ## - |
|---|
| -- |
45584 |
