COVID-19 and Fiscal-Monetary Policy Coordination: Empirical Evidence from India
Levy Economics Institute, Working Papers Series 1002 (2022)
19 Pages Posted: 8 Feb 2022
Date Written: February 7, 2022
Against the backdrop of the COVID-19 pandemic, this paper analyzes the economic stimulus packages announced by the Indian national government and tries to identify some plausible fiscal and monetary policy coordination. The shrinking fiscal space due to revenue uncertainties has led to a theoretical plausibility of a reemergence of finite monetization of deficits in India. However, the empirical evidence confirms no direct monetization of the deficit.
Keywords: Fiscal-Monetary Policy Coordination, Fiscal Deficits, Monetization, COVID-19
JEL Classification: E58, E62, E63
Suggested Citation: Suggested Citation