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Poorna Swaraj: Why the roaring success of demonetization isn’t economics at all

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How many times out of 10 would you listen to a politician asking you to physically go to a bank to either deposit your cash or exchange it for new currency notes, failing which any currency you hold would not only be worthless but also illegal? Until exactly a year ago I would’ve, in arrogance, vehemently ruled out the possibility of anybody in India ever agreeing to such a seemingly absurd arrangement. What I’d severely under-estimated was the value of two things: 1) Narendra Modi’s reality distortion field and 2) the extraordinary spirit in our people to contribute to social good in our country. This post is about the latter because the former, with no disrespect, is merely a spark- not the fuel or the flame which will carry India into the 21st century and beyond. Demonetization’s success as a financial policy move has been the subject of intense debate between some of the leading economists around the world. But whether Narendra Modi and his government eliminated corruption, black m

Poorna Swaraj: Why the roaring success of demonetization isn’t economics at all

Image
How many times out of 10 would you listen to a politician asking you to physically go to a bank to either deposit your cash or exchange it for new currency notes, failing which any currency you hold would not only be worthless but also illegal? Until exactly a year ago I would’ve, in arrogance, vehemently ruled out the possibility of anybody in India ever agreeing to such a seemingly absurd arrangement. What I’d severely under-estimated was the value of two things: 1) Narendra Modi’s reality distortion field and 2) the extraordinary spirit in our people to contribute to social good in our country. This post is about the latter because the former, with no disrespect, is merely a spark- not the fuel or the flame which will carry India into the 21st century and beyond. Demonetization’s success as a financial policy move has been the subject of intense debate between some of the leading economists around the world. But whether Narendra Modi and his government eliminated corruption, b