Noted US-based economist T N Srinivasan has cast serious doubts on the efficacy of the cash ban move, saying it will not help in fighting the menace of black money.
Srinivasan, Jr Professor Emeritus of Economics at Yale University, who at one point taught RBI Governor Urjit Patel, emphasised that the government needs to come out with a "well thought-out" policy to combat corruption. He told PTI:
"Although understandably, the demonetisation was not pre-announced, the government's implementation showed extreme unpreparedness and lack of thought," he said.
Srinivasan also pointed out that the government chose to cancel notes of denomination Rs 500 and Rs 1,000, but it did not clearly come out with the objectives.
Prime Minister Narendra Modi on 8 November announced the scrapping of the notes, pulling out 86 percent of the total currency in circulation.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)