Economy isn't a trained monkey to jump if you lower rates: Aswath Damodaran

Demonetisation is unlikely to destabilise economy as expected by some experts, says Damodaran

Aswath Damodaran, professor of finance at New York University’s Stern School of Business, tells Hamsini Karthik that demonetisation is unlikely to destabilise the economy as expected by some experts and low interest rates won’t do much to bring back economic growth. He also says because of globalisation, the risk premium of emerging markets has halved and that Trump’s policies will matter more for India and China than for the US. Edited excerpts of an interview on the sidelines of the Duff & Phelps Valuation Forum:
 
Equity returns worldwide are becoming anaemic, and more so, in India. With growth being