Deficit financing in developing countries: Application and consequences

Hasan, Zubair (2018): Deficit financing in developing countries: Application and consequences.

Abstract

This article discusses briefly various aspects and forms of deficit financing in modern economies. It deals with deficit financing (i) within countries and (ii) between the member countries of the International Monetary Fund (IMF} and that institution as aid provider to a member in difficulty. In (i) it focuses mainly on the use of deficit financing as an instrument to part fund development and its consequences. In (ii) it sees deficit financing on a global scale, explains IMF conditionality and the sort of programs it envisaged the aid seeking members to follow; it presents illustration and critique of these programs. In conclusion it contains some observations including a few policy suggestions

• Item Type: MPRA Paper
• Language: English
• Keywords: Deficit financing, Economic development; IMF conditionality; Arms race; Environment
• Subjects: H - Public Economics > H5 - National Government Expenditures and Related Policies; H - Public Economics > H6 - National Budget, Deficit, and Debt; H - Public Economics > H6 - National Budget, Deficit, and Debt > H63 - Debt ; Debt Management ; Sovereign Debt; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations; N - Economic History > N2 - Financial Markets and Institutions > N25 - Asia including Middle East; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy

References

Hasan, Zubair (2016): Risk Sharing – the sole basis of Islamic finance? Time for a serious rethink, KAU Journal: Islamic Economics, Volume 19, No. 2, section5, pp. 30-31

Hasan Zubair (2003): The 1997-98 financial crisis in Malaysia: causes, response, and results - Rejoinder, Islamic Economic Studies Vol. 10, No. 2, March

Hasan Zubair (2002): The 1997-98 financial crisis in Malaysia: causes, response, and results, Islamic Economic Studies Vol. 9, No. 2, March H

IMF Conditionality March 6, 2018:

https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/28/IMF-Conditionality I

IMF Survey on line 2015: https://www.imf.org/en/News/Articles/2015/09/28/04/53/sores100410a I

Khan, Ayub (September 1967) Friends not masters, Oxford University Press

Melendez, E. D (2015) on governmental wealth cost of crisis Huff Post US https://www.huffingtonpost.in/entry/financial-crisis-cost-ao_n_2687553

Planning Commission of India: Indian Economy: https://www.indianeconomy.net/splclassroom/what-is-deficit-financing-what-are-the-different-types-of-deficits-in-the-budget

Shula, Kampamba (January 2012): Critique of IMF loan conditionality

Stiglitz, J. E (1998): Redefining the role of the state, http://people.ds.cam.ac.uk/mb65/library/stiglitz-1998.pdf

Television deficit financing - Wikipedia https://en.wikipedia.org/wiki/Television_deficit_financing

Thaksin tv apeech<https://assassinationthaksin.wordpress.com/2013/03/24/thaksinomics-the-hero-of-thailands-financial-crisis-or-populous-madness>/