"Demonetization was a blow to economy", says Harvard Professor Gita Gopinath

Indian-origin Harvard professor Gita Gopinath has opined that demonetization was a blow to the economy.

Speaking to CNBC-TV18 Gopinath said although she was in favour of progression towards a cashless economy it should have been a gradual process. 

"We are seeing a lot of costs without seeing any benefits," the centre should have started with ₹ 1000 note," said the economist, who is also the financial advisor of Kerala Chief Minister Pinarayi Vijayan.

Gopinath also added that there is a lot of the indicators pointing towards a reduction in demand in the economy and one percentage point decline would not be surprising of GDP.

Gopinath's appointment as financial advisor to Kerala Chief Minister had sparked off a controversy in Kerala as Gopinath was considered to be a supporter of neo-liberal policies that was in contrast to the Left ideologies. Gopinath is the first Indian after Nobel laureate Amartya Sen to be named permanent professor at Harvard University.