November 7, 2017

Time to accept the blunder: Here's what Manmohan has to say on note ban anniversary

Manmohan Singh says the GDP might come out of the temporary shock but the deeper impact would continue. "...rising inequality has been a constant threat to our nature of economic development. Demonetisation may exacerbate such inequalities which can be harder to rectify in the future.

Manmohan does not agree that demonetisation was a good way to create a less-cash or digital economy, a justification the government has offered time and again and an objective many expert have found laudable.

"Any behavioural change cannot be coerced or forced. It has to be nudged and incentivised, as behavioural economists have found. Digital or cashless economy is a mere post-facto justification for what was fundamentally a flawed economic policy. They may be worthwhile objectives in themselves but perhaps misplaced in our current set of economic challenges and priorities for India," he said during the interview. He also differs on the argument that demonetisation would widen the tax net. "Widening ..

Singh thinks the Goods and Services Tax (GST) as well as demonetisation have hit the economy, but while GST is a good idea implemented badly, the very idea of demonetisation was wrong.


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