Thursday, September 17, 2009

Dr. B R Ambedkar was against Government Monopoly of Issuing Money!!!

As I earlier blogged here this is really shocking information that Dr. B R Ambedkar was in favour of Free Banking!! As for as issuing and managing of Money is concerned!!

In his memorandum given to The Royal Commission on Indian Currency and Finance which had visited India in 1924-25 to examine the financial system and to suggest the Reform of the Indian currency, he pointed out:

“……a managed currency is to be altogether avoided when the management is to be in the hands of the Government. When the management is by a bank there is less chance of mismanagement. For the penalty for imprudent issue, or mismanagement is visited by disaster directly upon the property of the issuer. But the chance of mismanagement is greater when it is issued by Government because the issue of government money is authorised and conducted by men who are never under any present responsibility for private loss in case of bad judgement or mismanagement.”

He also believed that:

  • “Any plan of currency to be sound must be both economical and secure.
  • ..the Gold Standard must be accepted as the only system of currency which is " knave proof "and "fool proof."


  1. amazing stuff.austrian economics lovers in india should claim ambedkar as their own.what a worthy leader he could have been.instead he has been hijacked by maya memsab et al in the horrible traditions of tokenism

  2. that is exactly true but the fact is that many of the free marketers don't go beyond certain level in the literature for making strong point. It is also true that the present mindset about B R Ambedkar is totally wrong even you tell this things to people who are so called follower of Ambedkar!