Modi’s war on cash stirred Indian economy into contraction: US economist Hanke
Criticising Prime Minister Narendra Modi�s decision to demonetise high-value currency notes, noted American economist Steve H Hanke said Modi has stirred India�s economy into contraction as result of his war on cash.
Criticising Prime Minister Narendra Modi’s decision to demonetise high-value currency notes, noted American economist Steve H Hanke said Modi has stirred India’s economy into contraction as result of his war on cash.
Hanke, an American applied economist at the Johns Hopkins University in US, in a series of tweets on Wednesday said, “"#Modi has officially steered #India’s economy into contraction as a result of his war on cash. Just what I anticipated would happen."
"Manufacturing takes the hit as the war on cash in #India adversely impacts the economy. #Modi," he added.
Hanke, who is also a Senior Fellow and Director of the Troubled Currencies Project at the Cato Institute in Washington, DC further said, "Demonetization will cause #India to slip from the leaders board for economic growth in #2017."
Referring to interest rate cut by some Indian banks post demonetisation, the eminent economist said, “Indian #banks have slashed interest rates to stave off economic decline and to spark investment. A #demonetization disaster @zerohedge."
Prime Minister Narendra Modi on November 8 had announced demonetisation of Rs 1,000 and Rs 500 notes making them invalid in a major assault on black money, fake currency and corruption.