Lekha Chakraborty is professor, NIPFP and research associate, Levy Economics Institute of Bard College, New York.
🔴 Lekha Chakraborty, Harikrishnan S write: An accommodative stance on public spending in budget holds key to economic revival
Lekha Chakraborty writes: Confronted by multiple challenges, including inflationary pressures and an uneven economic recovery, the central bank has chosen to prioritise growth by keeping the repo rate unchanged.
Given that a timely deficit may not have adverse macroeconomic consequences, surviving this pandemic first by enhancing the required spending is crucial
With more policy support, faster vaccine rollout, US will recover faster than emerging economies.
Given the limitations of monetary policy, a fiscal push is crucial for sustained growth recovery.