New Delhi: Former finance minister P Chidambaram said on Thursday that Prime Minister Narendra Modi’s decision on demonetisation was wrong and it was done in haste without considering economic facts.
“Merely by demonetisation one cannot get rid of black money," Chidambaram said in an interview to CNN-News18.
“There is no way out of this crisis and we have to bear the consequences...The Government is making kneejerk reactions, rather than thinking through about the impact,” he said.
Chidambaram also questioned whether RBI directors knew about the fallout of the demonetisation. “We want to know whether RBI officials were told that demonetisation had to be done. If they were told, did they question? We need to know all this. Did the RBI directors know about the enormity of the decision, I doubt if they knew about this,” he said.
In a scathing attack on the government's decision, Chidambaram questioned the premise that demonetisation wipes out black money.
"The wheels of the economy have come to a grinding halt as 86% of the money has been sucked out of the economy," Chidambaram said, adding that what the country was witnessing was only the first-order effect.
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