Munich Personal RePEc Archive

Deficit financing in developing countries: Application and consequences

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

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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

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