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Economist Suggests Printing Money Within Inflation Safe Limits to Address Budget Deficit in Kenya

2024-06-13 11:54:29.579000

Economist Tony Mwiti suggests that the Kenyan government can address the budget deficit by printing more money within safe limits, similar to what countries like the US and Japan are doing. He proposes injecting the money into projects that will not cause inflation, such as a massive government employment guarantee scheme. Mwiti emphasizes the need for a well-defined framework to regulate deficit funding and prevent pilferage. He suggests reducing the cost of fuel by printing money instead of taxing it and implementing a massive employment guarantee program. Economist Aly-Khan Satchu disagrees with Mwiti's proposal, stating that printing money would lead to inflation and devalue the currency. He suggests alternative solutions such as reducing government spending and maintaining fiscal discipline. Mwiti remains confident in his proposal, citing the success of Keynesian economics in the US during the Great Depression. [d623838d]

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