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

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