Amid the lockdown and the corona transition, former Reserve Bank Governor Raghuram Rajan suggested monetization to an extent to protect the government's economic health in the current 'extraordinary circumstances'. Monetization is typically seen by RBI linking notes to printing. Rajan has suggested this at a time when the government is trying to raise money to deal with the impact of Coronavirus on the economy.

For your information, let us tell you that in this link, the government has increased the limit of borrowing from the market by 54 percent to Rs. 12 lakh crore during the current financial year. Rajan has written in a blog post that 'the government should worry about the health of the economy and spend money on essential things. However, under these efforts, spending should be done on priority basis and unnecessary expenses should be reduced.

In his blog post, Rajan has said that the government should also keep in mind the fiscal deficit. However, monetization should not be an obstacle in this direction. He said that monetization has never been able to bring about a big change. He said that there should not be any major problem by adopting this option up to a limit. He said that India has been doing this even before, but it should be done only to a extent.

Also Read: 

Govt raises market borrowing limit to Rs 12 lakh cr for FY21

Know how to avoid SIM swapping

Tenants got big relief, landlords cannot take rent

India's foreign exchange reserves shone, this week increased by 16.2 million dollars