Is Chidambaram our next Muhammad bin Tughlaq? -- R. Jagannathan
by The Business Blog Sep 10, 2012
By R Jagannathan
Under pressure from a worsening fiscal deficit, Chidambaram will not only be printing more money than ever, but even the money he collects as revenue from disinvestment may be really be little more than an IOU for money to be printed in future. PTI
Every schoolboy has heard of Muhammad bin Tughlaq’s early exploits with debased coinage. Our history texts tell us that the Delhi Sultan (reign: 1325-51AD) issued brass and copper coins to people against gold and silver in the treasury in what was one of the world’s first experiments with fiat currency. The idea was to enable easier commerce with cheaper coins representing underlying gold and silver.
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