‘Note ban opens up new channels of corruption’: Austrian economist

TIL Desk/Business/New Delhi-Describing demonetisation as an attempt ‘akin to striking a rock with an egg’, eminent Austrian economist Heinz D Kurz has said it is ‘much too weak and misdirected an instrument’ to root out corruption. Actually, he said, the Indian government’s move opened up new avenues of corruption.

“As far as I understand the situation, the policy of demonetisation has already been abandoned by the government, because it turned out to be an attempt akin to striking a rock with an egg.”I strongly doubt that the demonetisation exercise will root out corruption and engender more transparency. It is much too weak and misdirected an instrument to achieve these goals,” Kurz told.

“By introducing the Rs 2,000 banknote, a currency of twice or even four times the value of the banknotes that have been declared illegal, in the system… This can hardly be called demonetisation,” he added. Kurz is a professor of economics at the University of Graz, Austria.