ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Holding Operation

Holding Operation HOW sharply the options available to the country for dealing with the balance of payments situation have narrowed has been startlingly brought home in the last couple of weeks. Till fairly recently one group of critics of the government's economic policies used to point to the dangers inherent in permitting year after year a large and growing excess of imports over exports and in seeking to finance such excess by resorting to borrowing in the international financial markets. The question was whether it was wise for the government to rely on commercial borrowings on such a scale and even the government would from time to time try to reassure the country that it was its policy to keep these borrowings within 'safe limits'. However, now when the country is a mere hairbreadth away from external bankruptcy it has been borne upon the government and the people that the option of commercial borrowing

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