4th January 2018
Sorry, S. Gurumurthy, you are totally wrong on almost everything
Someone shared this video of Gurumurthy’s talk on demonetisation in September 2017 in Chennai and asked for my views:
First of all, the talk is too long and rambling, so I looked to the internet for summaries. This written article provides good context about this man and his speech. Thereafter, I scrolled the above youtube audio to get a sense of what he is saying.
The problem with Gurumurthy is the same as the problem with Arthakranti people: they don’t know the real causes of black money and economic development but try to use financial tools to deal with fundamental incentive issues.
Gurumurthy also talks about the need for an Indian economics. That is a load of rubbish.
It is very unfortunate that people like him are influential enough in India to be given a platform to speak + also well connected to key decision makers.
We have good economists like Deepak Lal and Nirvikar Singh but they all fled India. No one wants to listen to genuine economist in India. [Of course those who follow my blog know that some time ago I discounted Deepak Lal after he bent over backwards to praise Modi! What idiocy – that showed he doesn’t understand the basics of liberty or good governance. ]
Let me add what I’ve been saying for 20 years: we need fundamental reforms of both the governance and policy systems in India. We need to get the incentives right – these are all very badly skewed and will invariably lead to bad outcomes.
Gurumurthy might benefit (although I suspect he is not the kind of man who will seek a new education at his age) from reading BFN.