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There are reasons not to fear fiscal deficits and central bank financing

Government deficits don't equate poor housekeeping. A crisis is a problem for the private sector's ability to pay its bills, not for the public sector.

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The severe economic downturn caused by the Covid-19 pandemic has forced governments worldwide to increase spending as tax revenues simultaneously collapsed.

THE severe economic downturn caused by the Covid-19 pandemic has forced governments worldwide to increase spending as tax revenues simultaneously collapsed. According to the Asian Development Bank (ADB) Covid-19 Policy Database, as at June 15, its 68 members had announced packages that amounted...

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