ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Debt AdjustmentSubscribe to Debt Adjustment

Post-COVID-19 Paths to Fiscal Consolidation

In order to analyse how the excess of growth over the real interest rate can best contribute to Indian post-COVID-19 debt adjustment paths, the article draws on historical experience, past adjustment episodes and special features of emerging markets. It notes that a countercyclical primary deficit will contribute, and together with a substantial g–r gap, lower debt most efficiently, creating space for adequate fiscal response to future shocks.
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