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Context: Greater public spending will increase the fiscal deficit and this expansion has to be financed. However, when the economy is in a recession, this is usually not in the reckoning even though the balanced-budget multiplier is one, i.e., output expands by exactly the same amount as the increase in government spending.
Money financing
Borrowing from World Bank:
A taboo subject
Reference:
https://www.thehindu.com/opinion/op-ed/how-to-pay-for-the-stimulus/article32279610.ecev
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