In other words, monetised deficit means the increase in the net RBI credit to the central government, such that the monetary needs of the government could be met easily.
Monetized deficit is when the government prints money to pay down the deficit.
In other words, monetised deficit means the increase in the net RBI credit to the central government, such that the
Monetized deficit is when government prints money in order to pay its deficits. Deficit financing is when a govt spends more than what it earns . They mean the same for money creators like USA, UK...
They carry a low rate of interest and fund monetized deficit. These bills were replaced by ways and means advance. Budgetary deficit has not figured in union budgets since 1997-98.
There are different measures of deficits in macroeconomics and each type of deficit measure carries a different macroeconomic meaning. The broad measures of deficit (which have been and/or are being) reported by the government in India, may be classified...
Monetise public debt and deficits. November 22, 2008 5:21 pm.
5. Monetised Deficit: Besides ways and means advances, the Reserve Bank of India also supports the government’s borrowing programme.
To monetise means to convert to money. Gold used to be monetised when the government issued
A deficit can be the source of sustained inflation only if it is persistent rather than temporary, and if the government finances it by creating money (through monetizing the debt)...