In a recent interview with Economic times, Paul Krugman had said something which we never expected from a Nobel laureate. Paul Robin Krugman is an American economist who is currently Distinguished Professor of Economics at the Graduate Center of the City University of New York, and a columnist for The New York Times. He has also been awarded Nobel Memorial Prize, in Economic Sciences.
While in interview with economic times, he has said that the note ban was a puzzling move, a move to eradicate black money and corruption from Indian Economy. When asked about his point of view on the decision taken of demonetization, he said that this is a blunt instrument to flush out corruption. There is a lot of collateral damage.
While mentioning that there is a lot of collateral damage, he also pointed out that the kind of loss he expected to see has not happened and that’s good news for India. However; it was a shock therapy and that was not well advised. He added saying this note ban move is not going to make any lasting dent or it’s not going to kill corruption and at the same time it can have a significant amount of damage to Indian Economy.
While speaking on current economic policies he said that it has been less dramatic than expected. Agreeing to the fact that GST is a good thing and emphasis on public investment is also a right kind of thing, he however pointed out that it does seems to be a little less than promised.