New Delhi : India’s Prime Minister Narendra Modi announced Demonetisation on 8th November and banned high value 500 and 1000 currency notes, leaving people across India in trouble.
American Economist Steve Hanke, a well known currency reformer has criticised PM Modi’s move of Demonetisation and said, even Modi have no idea where is India moving with his decision of Note Ban.
In his tweet Prof Steve said “#Demonetization is for losers and has been bungled from the start. No one, not even Modi, knows where India is heading”.
— Prof. Steve Hanke (@steve_hanke) February 5, 2017
PM Modi had addressed the Nation on 8th November and announced Note Ban from mid night on 8th Nov, he banned higher value notes Rs 500 & Rs 1000 which almost amounts to 15 Lakh Crore monetary cash currency that night. He said this is done in order to curb Black Money.
That’s different part as the government had able to curb only 40000 Cr out of 15 lakh crore of demonetised currency, which means 97% of demonetised currency has returned back to banks.
Steve Hanke is known for his work as currency reformer in emerging-market countries such as Argentina, Estonia, Lithuania, Bulgaria, Bosnia and Herzegovina, Montenegro, and Ecuador.
Even after government claiming to save Rs 40,000 Cr from Demonetisation if we do simple calculation, government has to pay around 15000 Cr for re-printing the demonetised currency and then the transpiration and security. This doesn’t seems to be helpful to government.
After this notban across economic world they criticised PM Modi decisions of banning notes, a news daily in China “Global Times” said in thier published daily that benefits of Demonetisation is like promising a home at MARS to homeless people. This is unfortunate the the Note ban will push Indian economy to a decade back. People will lose jobs and businesses. We know almost 200 people died due to demonetisation, some in ATM queue and some in Bank queue.
Even former Prime Minister Manmohan Singh called Note ban as a disaster for country, he also warned Indians to be prepared for the disaster which is coming due to Note Ban. He wrote in a column of The Hindu, targeting Modi government and said the decision of Note ban was taken in hurry and people are suffering due to this decisions.