No benefits of demonetisation as of now, not possible to become cashless society so swiftly: Gita Gopinath

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Published: December 15, 2016 2:43:54 PM

Stating that there have been no benefits of demonetisation as of now, Gita Gopinath, Professor of Economics, Harvard University on Thursady said that people have found innovative methods to convery black money into white.

Earlier today, Marc Faber the author of the The Gloom, Boom & Doom Report, told CNBC TV18, that he is against the demonetisation drive in India.Earlier today, Marc Faber the author of the The Gloom, Boom & Doom Report, told CNBC TV18, that he is against the demonetisation drive in India.

Stating that there have been no benefits of demonetisation as of now, Gita Gopinath, Professor of Economics, Harvard University on Thursady told CNBC TV18 that people have found innovative methods to convery black money into white. “Government could have looked at taking out Rs 500 and Rs 1000 notes gradually.” She also said that it is not possible to become a cashless society so swiftly and 1% drop in GDP growth won’t be a surprise. “Cash crunch unlikely to end very soon,” she added. Earlier today, Marc Faber the author of the The Gloom, Boom & Doom Report, told CNBC TV18, that he is against the demonetisation drive in India.

Another critic of PM Modi’s demonetisation drive has been market guru Shankar Sharma. Shankar Sharma has been criticising the step from Day 1. Sharma called the government’s move ‘economic nasbandi’. “This demonetization reminds of the Nasbandi drive of 70s. Bina soche, Bina blood/ oxygen, straight castration. This is economic Nasbandi.” Last month he had tweeted, “didn’t realise whole country was corrupt, looking at the bank lines. And by extension, the 0.1 pct not in que are honest. Total reversal.” Sharma had even called this India’s ‘Lehman moment’. “We should be proud. We now have a financial logjam. Our Lehman moment,” he said. “One thing is clear to me: there will be a significant earnings hit because of demonetization. The market is reacting correctly,” he had said last week. Shankar Sharma also claimed that had the demonetisation happened during the Congress regime, it would have been implemented “superbly”. “One thing I am sure of: if UPA had done anything like this demonetization, they would have managed superbly. PC super manager. Not this mess,” he tweeted.

Meanwhile, Chidambaram too has been slamming demonetisation. He recently called demonetisation as the biggest scam of the year. Taking a sarcastic dig at PM Modi’s promise of “acche din”. “1. Millions of working people standing in queue. Long live Productivity. 2. Thousands of “rich” and “corrupt” persons standing in queue. The poor are cheering from their homes! 3. Banks are doling out cash to citizens. That is proof that “Achhe Din” have arrived!,” the former Finance Minister tweeted last month.

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