.......While undertaking monetary- fiscal coordination, it is essential to appreciate that easing of monetary policy can be sequenced only after fiscal correction and inflation is brought under control. In other words, reduction in inflation must precede easing of monetary policy. To the extent there is fiscal correction, there would be headroom for easing monetary policy. Hence, there is need for caution in undertaking monetary- fiscal easing before inflation comes under control........
Read - FPJ
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