French economist and Nobel laureate Jean Tirole said that it was not possible to “catch corrupt money” with demonetisation.
On demonetisation and its impact, the economist said:
- “One cannot get the corrupt money right away because the money has already been invested in real estate, gold and other things.”
- Such a move, however, “will make future corruption more difficult.”
- Cashless economy “in my opinion is a good thing.
- But it should be ensured that the poor, who were most dependent on cash, did not suffer, he said.
- The economist referred to attempts being made by Scandinavian countries.
- But the situation there was different.
- “Denmark and Sweden are trying to get rid of cash because it is more convenient.
- In India, the reason is to get rid of corruption.
- “Denmark is a different case because what they are trying to do is give prepaid debit cards to the poor.
- That’s what you have to do for a cashless economy because the poor rely heavily on cash.