Quasi-fiscal policies pose inflationary risks, warns IMF paper

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An International Monetary Fund paper published on January 17 shows that quasi-fiscal policies, which alter the central bank's balance sheet, can have unintended inflationary effects on the economy.

Seok Gil Park, the paper's author, uses a theoretical model to assess the consequences of unconventional policy actions taken by central banks on macroeconomic and financial stability. Previous studies implicitly assume the quasi-fiscal policy is always passive. However, the author warns that the

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