Praxeology: My Reflexions on India

It's been 48 days of Modi's demonetization policy and it is a time for a further update. Since the day of announcement of this policy on the evening of 8th November the prime minister of India Narendra Modi is shifting the time scale of his promises about when the pain of people, due to demonetization, will end. In his original speech he promised that in 2-3 days everything will be normal. Then he said give me 50 days and all your woes will end, and if not then he said punish me in public ! Later he realized even this 50 day limit is not going to be enough so he said after 50 days slowly slowly the situation will start getting normal! Bankers are now saying that after the 50 day limit it will be impossible to give full cash money to depositors because the cash crunch is still as it was in the beginning and it will continue for many more months! I was recently interviewed by the globe trotting investment advisor Mr. Jayant Bhandari on the demonetization issue. Below is our...

Introduction   On the eve of 8 th November, 2016 the prime minister of India Mr. Narendra Modi came out on the national television and started announcing a rather unexpected policy decision of his. He said: To break the grip of corruption and black money, we have decided that the 500 rupee and 1,000 rupee currency notes presently in use will no longer be legal tender from midnight tonight, that is 8th November 2016. This means that these notes will not be acceptable for transactions from midnight onwards. The 500 and 1,000 rupee notes hoarded by anti-national and anti-social elements will become just worthless pieces of paper. This is how the demonetization, or as the former finance minister P Chidambaram termed the demonization of cash, policy of Narendra Modi government started. This announcement surprised the whole country. It shocked people. Objectives of this policy  So, why did Prime Minister Mr. Narendra Modi took this drastic step? What pr...