Manmohan Singh ended government deficit monetization via RBI bills
Ashok Bhattacharya (A.K. Bhattacharya) · Modi Govt Vs Raghuram Rajan, 1991 Finance Team, & India’s Brain Drain Challenge I A.K. Bhattacharya · May 3, 2024 · at 7:55
Ashok Bhattacharya discusses the history of fiscal policy restraints and central banking reforms in India.
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“He decided to bring in the idea that the government should not have a free check As far as it meeting its deficits are concerned, it must go out to the market and borrow money through the RBI Reserve Bank of India and meet its deficit. Good old days, what is to happen is that the government could issue ad hoc treasury bills and the RBI will use them and give money to the government. So essentially nothing else but printing currency notes.”
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