Note ban 'highly disruptive'; not to change behaviour: Krugman

December 02, 2016 20:50

Criticising demonetisation of Rs 500 and Rs 1000 notes, Nobel laureate Paul Krugman today said it is "highly disruptive" and will not change behaviour of people who would become more careful and sophisticated in money laundering.

"I understand the motivation but it is highly disruptive way to do it... I would not think there will be prominent change in behaviour. People will be more careful and

sophisticated in money laundering so that they will be protected next time," Krugman, Professor of Economics at City University of New York said at the HT Leadership Summit in New Delhi.

Krugman said it is an unusual step and there is good case for demonetisation of high value notes.

He said launching Rs 2,000 currency is not outrageous but is an attempt to flush out hoarders.

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