Nobel Laureate Dr Paul Krugman today criticized the implementation of demonetisation policy by calling the policy, implemented by the Narendra Modi government, ‘unusual’. The American economist said that while the motivation behind demonetisation is understandable but the implementation of the policy is highly disruptive.
Speaking at the HT Leadership summit, Dr Krugman claimed the China is slowing down in economy and trade and India could definitely be the next big potential. The Nobel laureate also said that India must work on reducing poverty, like the way Brazil did under the previous government using conventional fiscal means.
Over controversies on the newly implemented not-ban policy, Dr Krugman said that currency policy cannot be separated from monetary policy. He also stated that currency war is not the to be fought at this time.
Citing the rise in the flow of black money in the country, Prime Minister Narendra Modi, on November 8, had implemented the demonetisation policy, following which there had been a ban on currency notes of the denomination Rs 500 and Rs 1,000. Chaotic situation emerged among the common people of the country, after the ban on currency notes and even weeks after the implementation o the policy, people had been seen, standing on ‘never-ending’ queues, waiting for hours, outside banks and ATMs.
A Political storm had also erupted across the country, with opposition leaders blaming the ruling BJP government for a confused implementation of the anti-graft policy, creating massive public distress.