In
a new turn to its advocacy of a conservative fiscal
stance amidst a recession, the International Monetary
Fund in the April 2022 edition of its "Global Financial
Stability Report" has called for reining in bank
credit to governments as a way of weakening the sovereign–bank
nexus that was strengthened during the pandemic and
ostensibly threatens bank stability.
*
The article was originally published in Economic and
Political Weekly (EPW), Vol. No 57, Issue No 20, on
14 May 2022.
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