In 1926, the Hilton-Young Commission took testimony from various concerned parties re. Indian monetary policy. This eventually led to the setting up of the Reserve Bank of India in 1935.
Dr. Ambedkar didn't trust any Indian Government & so didn't want there to be any type of seigniorage. Sadly, he was as stupid as shit. His proposals were as follows-
2) still yields seigniorage. If the Mint is a private concern, this is a windfall for the contractor.
3) Gresham's law says that one or the other will go out of circulation. Again, this is a windfall for the creditor & a curse for the debtor.
4) You can't stop guys with rupees buying gold privately.
Ambedkar had a PhD in monetary theory from the LSE. He wasn't born stupid. He worked very hard to become stupider than shit.
1 comment:
Did you watch Dhurandhar 2 yet? Interesting retcon of Modi’s demonetization as a quasi-surgical “operation greenleaf,” foiling a counterfeiting plot. Sorry for the spoiler, the film contains many more surprises. Seems tangentially related
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