RBI report on demonetisation: If noteban move is exposed, question will be raised on inputs, says Raghuram Rajan

By: | Updated: September 6, 2017 7:39 AM

Former Governor of the Reserve Bank of India, Raghuram Rajan, has said if demonetisation decision is exposed and it is found that it has not delivered the optimum results, questions will be raised about the inputs that went into that decision

raghuram rajan, demonetisation, rbi, RBI report on demonetisation, raghuram rajan on demonetisation, raghuram rajan interview, raghuram rajan book, raghuram rajan rbi, rbi, reserve bank of indiaFormer Governor of the Reserve Bank of India, Raghuram Rajan, has said if demonetisation decision is exposed and it is found that it has not delivered the optimum results, questions will be raised about the inputs that went into that decision. (PTI)

Former Governor of the Reserve Bank of India, Raghuram Rajan, has said if demonetisation decision is exposed and it is found that it has not delivered the optimum results, questions will be raised about the inputs that went into that decision, Indian Express reported. A few days ago, RBI has revealed that almost 99 per cent of the banned notes back into the system nine months after Prime Minister Narendra Modi’s decison on November 8 last to withdraw Rs 500 and Rs 1,000 notes. It has been learnt that the central government in February had asked for Rajan’s views on the much-discussed demonetisation move. Rajan was governor of the central bank untill September 4, 2016.

In his book titled ‘I Do What I Do: On Reforms Rhetoric and Resolve’, Rajan says he had conveyed to the government that though there could be long-term benefits, the likely short-term economic cost would outweigh them and that there were potentially better alternatives to achieve the main goals. The book was launched in Chennai yesterday.
“I was asked by the government in February 2016 for my views on demonetisation, which I gave orally. Although there might be long-term benefits, I felt the likely short-term economic costs would outweigh them and there were potentially better alternatives to achieve the main goals. I made these views known in uncertain terms,” Rajan wrote.

“I would rather ask the question — to what extent does the decision get informed by good economics? That’s what we would all want. And to that extent if that decision turns out exposed — to not having the right effects on the economy — as a country, you would want to ask what were the inputs into that decision, (demonetisation),” he was quoted as saying by The Indian Express.

During his tenure as RBI governor, Rajan drew flak for voicing his views on issues other than monetary policy.

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