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    HomeNewsOpinionDemystifying G-SAP with Modern Money Theory

    Demystifying G-SAP with Modern Money Theory

    By announcing a massive bond purchase programme, the G-SAP, the RBI assures infusion of enough liquidity (a swap of bonds for reserves) into the system before it will be drained out when it auctions new government bonds (a swap of reserves for bonds), thereby maintaining money markets rates within the target range 

    Sashi Sivramkrishna
    April 13, 2021 / 08:59 IST
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