Nobel Laureate, Abhijeet Banerjee warned India on demonetization

Abhijeet Banerjee is one of the three receivers of Nobel Prize for Economics alongside Esther Duflo and Michael Kremer.

Abhijeet is an Indian American economist who has helped in the fields of microfinance and financial inclusion.

The Nobel laureate had warned India when demonetization plan had been put up.

He even mentioned that the pain would be much greater than was initially anticipated.

He has written a paper with Namrata Kala, Harvard University’s professor in which the key point he stated was, “Second, one of the stated motivations of the policy was to reduce corruption, yet the value of the highest-denomination bill was doubled, making it easier to pay people illegally with anonymity. Thus, demonetisation seemed more like a one-off penalty on those who were holding large quantities of cash at the time without affecting the future incentives for corruption,”

It’s not only him but many feel that the current economic stress reason is somewhere due to demonetization.