Both Dr Amarya Sen and Dr Manmohan Singh seem to be biased on the issue of demonetisation and their observations have not come out of their knowledge of economics.Being eminent professionals, having international experience and knowledge of evils of corruption, black and fake money faced by the emerging economies in particular,both should not have come out with such harsh statements on demonetisation. The economy needs lots of clean up and the PM with all resistance and opposition shows some conviction and guts to take some very bold steps risking his own party's prospects in the next election. The economy has been facing all sorts of problems because of corruption, heavy accumulation of illegal wealth in the form of cash, gold, real estate , assets abroad and all types of attendant issues like terrorism, high inflation, erratic data on vital issues like GDP growth, employment, distribution of wealth , allocation of subsidies, exports, imports , lack of capital for the much needed physical and social infrastructure. Unless and until the economy is cleaned first and corruption, black money and fake money are removed and the ill effects of the mismanagement of the economy for several decades have been eliminated completely, the chances of the economy registering growth and distribution of wealth in an equitable and fair manner to remove the poverty once for all are very remote and the PM has no way but to take drastic measures even at the cost of facing some disruptions . Demonetisation is the first step and many more such drastic steps are needed. This is the time for professionals to view things in the right perspective and appreciate some politicians without the knowledge of the economics have come forward to take some corrective measures to put the economy on the right track. It is unfortunate that Dr Manmohan Singh and Dr Amartya Sen have different views and have opposed the PM's move to demonetisation tooth and nail without any rhyme or reason.
Dr T V Gopalakrishnan
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