India could face significant short-term economic costs from the ban on large-denomination currency notes, with no significant long-term benefits, economist Paul Krugman warned on Friday.
The 2008 Nobel Prize-winning economist said there is a good case to be made for not having high-value currency notes, but noted that India’s “unusual move” of discontinuing old Rs 500 and Rs 1,000 notes was only a one-time effort to flush out hoarded money, and not to eliminate the denominations forever.
