State two fiscal policies and monetary policies of debt management used in your country.

State two fiscal policies and monetary policies of debt management used in your country.

Fiscal policies of debt management include

  • Surplus budget to create sinking fund
  • Pay as you use method
  • Exceptional financing
  • Imposition of capital levy on the rich to generate more revenue

Monetary policies of debt management include

  • Use of reserves
  • Sale of government securities
  • Borrowing from the central government
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