Daily Archives: December 19, 2016

Demonetization: analysis updates

It has been more than 30 days since Prime Minister of India Narendra Modi cancelled the Rs. 500 and 1000 notes that constitute almost 85% of currency in circulation.

A good analysis of how the policy narrative has changed over these days is by Praveen Chakravarty in Business Standard.

A better economic analysis can be found on Ajay Shah’s blog in ¬†post written by Suyash Rai.

On the other side of the camp, there is Professors Bhagwati, Krishna, and Sunderasen in a blog post on the Times of India who can be seen literally scrambling to justify the policy of demonetisation without much success. I am pretty sure that most economists working for Niti Ayog(for e.g. Arvind Panagariya) had to do the same thing- somehow come up with some arguments to justify the policy as a good move. One wonders if they were consulted at all!

 

 

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Filed under current economic issues, demonetisation, Monetary Policy