Opinion | Printing currency isn’t a good way to finance deficit

On 10 February, wire services reported that the then interim finance minister Piyush Goyal favoured “printing currency” as a mode of deficit finance, approvingly citing the example of the US. “As finance ministers we are always in need of money,” Goyal said. He added, “I have heard that the US does deficit financing only by printing currency,” a canard that has been repeated by luminaries of the “Indic” ecosystem enveloping this government in its latter days. By “printing currency”, Goyal is referring to what traditionally was called money finance or…

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