JAKARTA/SINGAPORE, July 13 (Reuters): Indonesia's experiment to borrow money for free from the central bank has excited proponents of modern monetary theory and raised concerns about its effects on inflation and the rupiah.
The "burden-sharing" agreement unveiled last week involves Bank Indonesia (BI) effectively buying about $28 billion worth of bonds the government plans to issue to finance its Covid-19 stimulus spending, while relinquishing interest payments.
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