Introduction to Demonetization and Its Supporters in India

Demonetization, a significant economic policy introduced by the Indian government, has garnered both support and controversy. This piece explores the prominent economists who have backed the demonetization policy, highlighting their views and contributions to the Indian economy.

Economists Supporting Demonetization: An Overview

Notably, a majority of the logical and rational economists in India have thrown their support behind the demonetization process. Figures like Bhalla, Debroy, Virmani, and Jaitely, among others, have been vocal in their endorsement. The support ranges from seasoned finance professionals to academic stalwarts, enriching the discourse on the efficacy of demonetization.

Key Supporters of Demonetization

Bhalla: A Prominent Figure from Delhi School of Economics

Bhalla, an economist professor at the Delhi School of Economics and former World Bank employee, has expressed his support for demonetization. His expertise in economic analysis from both academic and practical perspectives provides a strong foundation for his endorsement.

Debroy: A Leading Think Tank Member

Bibek Debroy, a member of Niti Ayog and leading economist in the think tank, has critically examined criticisms of demonetization. He feels the detractors are not well-informed about the government's efforts in financial inclusion and the economic benefits realized from the process.

Virmani: Past IMF Representative and CEA

Arvind Virmani, a former India's representative at the IMF and a former Chief Economic Advisor (CEA), has written extensively on demonetization. He views it as a tool to flush out black money and enhance the transparency of the economy.

Jaitley: Current Finance Minister

Alok Jaitly, the current Finance Minister, stands as a key advocate for demonetization. Witnessing the policy's implementation firsthand, he has been a vocal proponent of its benefits for economic development and integrity.

Urjit Patel: A Renowned Inflation Expert

Urjit Patel, a leading economist in inflation and current RBI chief, supports demonetization as a means to address the challenges of black money and corruption. His position as a central banker brings an additional level of credibility to his support.

Gurumurthy: South India's Leading Economist

Professor Gurumurthy has defended demonetization in public forums, highlighting its potential to clean up the economy and combat corruption. His expertise from the regional standpoint contributes to a comprehensive understanding of the policy.

Engineers: Rana Kappor and Ravi from Yes Bank and Brookings India

RANA Kappor, CEO of Yes Bank, and Ravi, a senior member of Brookings India, have expressed their support for demonetization. Their positions in the banking and economic research sectors lend a practical and analytical perspective to their endorsements.

Former RBI Governors: D Subbarao, YV Reddy, and Jalan

D Subbarao, former RBI governor, has penned an article supporting demonetization in South Asian Studies, a think tank of the National University of Singapore. He believes that demonetization is beneficial in the long term for India's economy.

Rogoff: Former IMF Chief

Professor Rogoff, a former IMF Chief, has also backed demonetization. His international experience and insights contribute to a global perspective on the Indian economy's resilience and potential for growth.

Support from South Indian Economists

Economists such as YV Reddy and Jalan, who were former RBI governors, have shown their support for demonetization. Reddy, in particular, has advocated for the policy, emphasizing its potential to streamline the Indian economy.

Dasgupta: Professor from Shyamasunder College

Buddhadeb Dasgupta, a former professor from Shyamasunder College, has also supported demonetization. His academic background brings a rigorous analysis to the discussion, highlighting the potential benefits of the policy.

Nilekani: President of NCAER

Ramachander Nilekani, who serves as the President of NCAER, has also expressed his support for demonetization. His experience in economics and public policy adds weight to the positive assessments.

Why These Economists Back Demonetization

These economists support demonetization for various reasons, including the need to combat black money, enhance financial inclusion, and promote economic transparency. They argue that without thorough consultation with experts, such steps would not be taken, highlighting the rationality and strategic thinking behind the policy.

Challenges and Criticisms

While these economists support demonetization, they are also aware of the challenges it poses. Criticisms, primarily from political and opposition quarters, have focused on the short-term economic disruption and inconvenience to the public. Nonetheless, the ongoing debate underscores the importance of evidence-based policy-making in addressing economic issues.

Conclusion

In conclusion, the support for demonetization from prominent economists underscores the robust thinking and strategic planning behind the policy. These experts bring a wealth of knowledge and experience, contributing to a deeper and more informed understanding of the economic benefits and challenges associated with demonetization.