Criticising Prime Minister Narendra Modi’s decision to demonetise higher value currency notes, noted American economist Steve H Hanke said India’s “war on cash” has pushed its economy into contraction as anticipated.
“#Modi has officially steered #India’s economy into contraction as a result of his war on cash. Just what I anticipated would happen,” Hanke, an American applied economist at the Johns Hopkins University in Baltimore, Maryland said in a series of tweets.
“Manufacturing takes the hit as the war on cash in #India adversely impacts the economy. #Modi,” he added.
Hanke, who is also a Senior Fellow and Director of the Troubled Currencies Project at the Cato Institute in Washington, DC further said, “Demonetization will cause #India to slip from the leaders board for economic growth in #2017.”
