Thread by @BloombergQuint

Should India resort to debt monetisation, or is the cure worse than the disease?

Read Hugo Erken and the @RaboEconomics team in #BQOpinion.
bit.ly/3hUY3S1

@RaboEconomics Debt monetisation or Modern Monetary Theory seems to generate some consternation among economists, and indeed people in general.

But the mechanism by which MMT works is very simple.

Read more in #BQOpinion 👇
bit.ly/2EqwCRk

@RaboEconomics #BQOpinion | But there are huge risks involved.

A country can adopt MMT without causing side-effects only if it meets three criteria.

Here is one of them 👇
bit.ly/3jS2iiR

But if a country runs a structural current account deficit—as India does—things become problematic.

Why? Read more in #BQOpinion 👇
bit.ly/3gjUVOU

Only seven countries are eligible to apply MMT in a sustained, responsible manner.

Hugo Erken and the @RaboEconomics team explain why, in #BQOpinion.
bit.ly/2Pd3LlW

@RaboEconomics What would happen if India were to adopt MMT despite these warnings? #BQOpinion

Read more: bit.ly/3jHlv6Z