Finance Minister P Chidambaram rejects Narendra Modi's 'lesson in economy'

NEW DELHI: In another dig at Narendra Modi, finance minister P Chidambaram on Saturday said the BJP prime ministerial candidate was giving his “first lesson in economy” and denied he had ever said that buying gold causes inflation.

“After history lesson, Narendra Modi has delivered his first lesson in economics ... I recall having said on many occasions that buying gold, which is almost entirely imported, worsens current account deficit (CAD). I don’t recall saying that buying gold causes inflation,” Chidambaram said in a statement. He was apparently referring to several goofups by Modi in his recent speeches relating to ancient history and some other events.

With an obvious tinge of sarcasm, Chidambaram asked economists to “take note of the new lesson” by Modi. The finance minister was responding to the reported remarks of Modi at an election rally at Jodhpur in which he had said that Chidambaram has attributed inflation to buying gold.

“I am not as educated as him...but I know inflation is not because of buying gold but due to corruption,” Chidambaram’s statement quoted Modi’s remarks in newspapers. Modi has been under attack from opponents over his remarks in election speeches which were not in sync with historic facts. Meanwhile, the Gujarat chief minister addressed three rallies in various places in Delhi on Saturday. He attacked the prime minister Manmohan Singh and Chidambaram, saying they have ruined the country with their “bookish knowledge”.

“They [Singh and Chidambaram] say we don’t want to learn economics from Modi, but you should have at least learnt from Narsimha Rao and Atal Bihari Vajpayee. Then you would have understood how to run the country. Both were not considered as economists, but the two great leaders were aware of country’s problems,” Modi said.