Covid 19 and Fiscal-Monetary Policy Co-ordination: Empirical Evidence from India

Chakraborty, Lekha S and S, Harikrishnan (2021): Covid 19 and Fiscal-Monetary Policy Co-ordination: Empirical Evidence from India.

Abstract

Against the backdrop of covid-19 pandemic, the paper analyses the economic stimulus packages announced by the national government in the context of India and tries to identify the plausible fiscal and monetary policy co-ordination. The shrinking fiscal space due to revenue uncertainties has led to a theoretical plausibility of a re-emergence of finite monetisation of deficits in India. However, the empirical evidence confirms no direct monetisation of deficit.

• Item Type: MPRA Paper
• Language: English
• Keywords: Fiscal-Monetary Policy Co-ordination, Fiscal Deficits, Monetisation, Covid 19
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy ; Stabilization ; Treasury Policy

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