Note ban a massive, draconian, monetary shock: Ex  CEC Arvind Subramanian
Note ban a massive, draconian, monetary shock: Ex CEC Arvind Subramanian
Share:

New Delhi: Note ban was a huge, draconian, monetary shock that accelerated economic slide to 6.8 per cent in the seven quarters after it against the 8 per cent recorded ahead of the demonetization, stated former Chief Economic Advisor Arvind Subramanian.

Asserting on the November 8, 2016 surprising decision of Prime Minister Narendra Modi, he said that he does not have a strongly-backed pragmatic view apart from the fact that the welfare costs, more than ever on the informal sector, were extensive.

Subramanian left the post earlier this year after a four-year tenure. He has devoted a chapter in the upcoming book "Of Counsel: The Challenges of the Modi-Jaitley Economy". This book is published by Penguin and it has continued to keep a studied silence on whether he was consulted in the decision-making process of noteban. The critics of the government had stated that the Prime Minister had not consulted the CEA on the key decision.

"Demonetisation was a massive, draconian, monetary shock”.

 In one fell leap, 86 per cent of the currency in circulation was taken out. The real GDP growth was affected by the noteban. Growth had been slowing even before, but post demonetisation, the slide accelerated.

 

 

Join NewsTrack Whatsapp group
Related News