Note ban's impact on Indian economy overstated: Former US Fed vice-chairman

Former Vice-Chairman of US Federal Reserve Stanley Fischer said Tuesday that demonetisation has not impacted the Indian economy to the extent predicted by economists.

Fischer said implementation of the Goods and Services Tax (GST) and creation of Aadhaar for over a billion people were major achievements of the Modi government.

"Demonetisation did cause a recession but far less serious recession than most had predicted," the eminent economist said at an event organised by think tank NCAER.

Prime Minister Narendra Modi on November 8, 2016 had announced demonetisation of Rs 1,000 and Rs 500 notes, which saw 86 per cent of the cash by value going out of circulation.

Last week, Finance Minister Nirmala Sitharaman had said India still continues to be the fastest growing economy and demonetisation has had no effect on the Indian economy than most had predicted.

Fischer said that in the US and some other advanced countries, inflation is well below the target since 2010.