Financial space gurus Kenneth Rogoff and Martin Sorell spoke to ET NOW and they shared their views, especially apprehensions about India and the recent major happenings in the financial sector, specifically demonetisation. Both the economist and businessman were speaking at the World Economic Forum (WEF) at Davos where the annual meeting attended by top corporate world and government leaders is taking place. The 47th edition of the meeting had begun on 16 January. Marking their presence at the forum are Reliance Industries chairman Mukesh Ambani, Infosys CEO Vishal Sikka, Klaus Schwab, founder of WEF and, in a first, even Chinese President Xi Jingping was present. The Davos meet is being attended by an Indian delegation of 100 CEO’s and other Government officials. Here we present Rogoff and Sorrel, both of whom opened up with their concerns surrounding demonetisation. Check out the the edited excerpts:
Kenneth Rogoff :
1. The Reserve Bank of India has not yet printed and supplied enough notes to deal with demonetisation.
2. For a developing nation, demonetisation may not be a great idea.
3. Demonetisation is a strong move, it takes years for currency to ‘phase out’
4. A minimum of 5-6 months required for printing notes to the fullest.
5. While planning for long term economic goals, need to be careful on short term measures.
6. Independent function of the Central bank is very necessary for any economy.
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A more tolerant view of the demonetisation move appeared in the form of Sorrell.
1. Surprised by the ‘resilience’ of the economy post the demonetisation move
2. ‘I continue to be a raging bull’, India a favourite spot for investment.
3. Rapid increase of opportunities in the Indian market.
4. Brazil, China, India are countries picking up economy.
5. US economy looks stronger in the short term.