According to sources a prime supporter of demonetization and member of the Reserve Bank of India, S Gurumurthy once again called the biggest monetary decision taken by the Modi government a correct. Gurumurthy said that demonetization was very important. He, however, agreed that the move had some ill-effects too.



When asked by Rajdeep Sardesai whether demonetization was a correct move for an economy like India where most people keep cash at home, Gurumurthy said that the decision was very important for India's economy. Defending the note ban, he said, "The impact demonetization had been far less than that of the 2008 American recession." He also said that between 1999 and 2004, the stock exchange went up by 31%, gold prices rose by 32% and real estate too appreciated by 21%.

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Gurumurthy that after this within six years, the prices of these commodities went up 338% increase in stocks, a 330% increase in gold and a 210% increase in real estate. He claimed that high-denomination currency notes were used for these transactions which made it necessary to ban Rs 500-1000 notes.


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