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Nobel Laureate Calls on India to Boost Pandemic Support Spending

  • ‘Not clear’ bond markets would react negatively, Banerjee says
  • Banerjee expects India will be more prepared for a third wave
Abhijit Banerjee
Abhijit BanerjeePhotographer: Scott Eisen/Getty Images

India’s government could be spending more to help its population of almost 1.4 billion weather the economic devastation from the country’s explosive second wave of Covid-19 infections, according to Nobel Laureate Abhijit Banerjee.

It’s “not clear at all” that bond markets would react negatively to such moves made to avert “an ongoing series of crises,” said Banerjee, 60, who was co-recipient of the 2019 Nobel prize for economic science for his work on poverty alleviation.