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How ‘financial adventurism’ can boost debt-hit nations

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The G20 leading economy grouping should adopt more ‘adventurous’ policies on lending to hard-hit developing nations to help overcome global divergence generated by Covid-19. That was a principal message from the joint National University of Singapore-OMFIF seminar on 26 July on ‘Debt sustainability and the future: Rebooting development finance’.

Professor Meghnad Desai, chairman of the OMFIF advisory council, said the world had to make the best of a shift away from orthodox monetary policies after the 2008 financial crisis. ‘A time for demand for adventurous banking coincides with the supply of adventurous central bank lending. We can convey the benefits of adventurism to those who wish to use it’, declared Desai, emeritus professor at London School of Economics.

Forecasting that interest rates and inflation would remain low for a long period, Desai said each financial crisis tended to set back poorer people around the world and raise…

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