The latest person speaking out against Prime Minister Narendra Modi’s surprise note ban announcement is former Chief Economic Advisor (CEA), Arvind Subramanian. He has finally voiced an opinion about the move that saw nearly 86 per cent of the currency in circulation at the time being invalidated overnight, calling it “a massive, draconian, monetary shock”.
In his soon-to-be-released book, “Of Counsel: The Challenges of the Modi-Jaitley Economy”, Subramanian has reportedly devoted an entire chapter to demonetisation. “Demonetisation was a massive, draconian, monetary shock: In one fell swoop, 86 per cent of the currency in circulation was withdrawn. The real GDP growth was affected by the demonetisation. Growth had been slowing even before, but after demonetisation, the slide accelerated,” he penned in the chapter titled The Two Puzzles of Demonetisation – Political and Economic.