The long-term growth prospects of the Indian economy provide an enormously attractive investment environment for a range of businesses and, consequently, for the people who would finance them. However, as attractive as the opportunity may seem, the assessment would not be complete without a full understanding of the risks.
This “policy mix” is different from “helicopter money,” which is an expansionary fiscal policy financed by a permanent increase in the central bank’s money, and from “deficit financing,” in which the central bank purchases government debts for the sake of facilitating the government’s financing.