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December 16, 2016

Interesting Interview with Gita Gopinath on the Demonetisation Move

Harvard professor Gita Gopinath speaks about the demonetisation move and and its implementation in this interview with CNBC 18. She says:

 

"I am in favour of the principle of moving to a low cash usage economy. The harder thing to swallow is this rather dramatic overnight making 86 percent of the currency in circulation illegal tender. The argument was that this is one way to get the hoarders, because they would have a harder time recycling their money, but clearly that not been the case, the people are fairly imaginative and they found very creative way to bringing the money back in. So I say exposed. It does feel like exposed, we are seeing a lot of the cost without any of the benefits of doing this in a shock and awe manner."
 

Watch the full interview here.

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