MUMBAI: The government’s decision to push ahead with note ban, Reserve Bank’s hawkish monetary policy and a strong rupee have contributed to India’s tepid economic growth, according to Nobel winning economist Paul Krugman.
Talking at an event here on Wednesday, Krugman also questioned whether the country’s favourable demographics would aid economic growth. “Your six per cent growth is actually disappointing. You should be doing 8-9 per cent.”
He added that India should be mindful of conventional macroeconomic issues because that’s what will impact the country’s economy more than other issues.
On RBI policy, he said, “If advanced countries saw the trends of inflation you see here, you would be talking of substantial loosening of your monetary policy.”