Economics
Debt Monetization in Asia Given Nod by IMF in Policy Shift
- Fund says some economies can lean more on their central banks
- Asia official credits ‘highly unusual and exceptional times’
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The International Monetary Fund’s October acknowledgment of the case for temporary debt monetization in Asia marked yet another example of how the pandemic has upended economic orthodoxy.
It’s an about face for the IMF in a region where its calls for policy austerity are sometimes blamed for worsening the economic hardship caused by the Asian financial crisis of the 1990s.