Govts should spend, not obsess over increasing debt, say economists

Ragananthini Vethasalam

Economist Prof Jomo Kwame Sundaram says all countries need to widen their emergency response capacity. – The Malaysian Insight file pic, October 12, 2020.

GOVERNMENTS should not obsess over increasing debt with borrowing, as now is the time to spend to mitigate the effects of the Covid-19 pandemic, said prominent economist Prof Jomo Kwame Sundaram.

“I think borrowing means there will be more debt, but I do not think we should be obsessed about it,” the senior adviser at Khazanah Research Institute said in a webinar hosted by think-tank Research for Social Advancement (Refsa) today. 

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