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‘Do as I say not as I do’: Here’s what Uday Kotak has to say on printing money

‘Do as I say not as I do’: Here’s what Uday Kotak has to say on printing money

CEO of Kotak Mahindra Bank Uday Kotak warned governments to not print money when it comes to managing your economy in times of crises like the coronavirus pandemic.

CEO of Kotak Mahindra Bank Uday Kotak CEO of Kotak Mahindra Bank Uday Kotak

The CEO of Kotak Mahindra Bank Uday Kotak warned governments to not print money when it comes to managing economy in times of crises like the coronavirus pandemic. Kotak said that 60 per cent of the world reserves are in US dollar ($) and this is a privilege that allows the US to be liberal, or rather reckless, with printing money, fiscal and current account deficit and military spending.

Kotak tweeted, “60 per cent of world reserve [is] in US $. An exceptional privilege that allows [the] US to be liberal (reckless?) with printing money, fiscal and current account deficit, military spending. As the quote goes: “Do as I say not as I do.” Other countries better not try walking in US shoes!”

This, however, is not the first time that Kotak has warned central banks against using printing money as “one medicine for all problems”.  In this tweet, Kotak also called for finding an immediate solution to the issue and drag it more.

“Central banks and sovereigns globally have one medicine for all problems: print money. Distorts value and values. Like climate change it is the future generation’s problem. We need to solve it not kick the can. Future is here. Future is now,” he tweeted.

Kotak’s views on printing currency interestingly align with what former RBI Governor Duvvuri Subbarao had to say about the same. The ex-RBI boss said that the central bank should eschew printing money unless it becomes the only option.

“It (RBI) can print money but, it should avoid doing so unless there is absolutely no alternative. For sure, there are times when monetisation – despite its costs – becomes inevitable such as when the government cannot finance its deficit at reasonable rates. We are nowhere near such a scenario,” Subbarao had said in an interaction with news agency PTI last year.

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