Nobel laureate and economic expert Richard H. Thaler has said that despite the BJP making tall claims about the ‘effects’ of its demonetization drive, it can only be considered as best a ‘failure’.

Modi announced demonetization on the night of 08th November last year, catching the people by surprise when they were told that the existing Rs.500 and Rs.1000 currency would become invalid with immediate effect. People underwent many untold miseries, some lost lives as Indians were made to stand on serpentine queues outside many Banks/ATMs across the country to exchange their old notes and to withdraw money.

Opposition parties said on the eve of the first anniversary of ‘demonetization’ that it had ruined the country’s economy, slowing down the economic growth.  BJP, in the meantime, celebrated the anniversary as ‘anti-black money day’. Thaler has commented about demonetization in his e-mail reply to an Indian student.

“Though demonetization encourages cash-less digital transaction, it was wrong on the part of the Govt. to have declared as invalid the existing R2.500 and Rs.1000 currency notes. Introducing Rs.2000 currency notes in their place was also a wrong move which led to the economy taking a downward path,” he said in his e-mail message, thus discounting the BJP’s claims that ‘all is well’ in the post-demonetization phase.