Praxeology: My Reflexions on India

Many states of India are again experiencing situation like demonetization of 2016. ATMs all across India are running dry and we are seeing long lines outside banks. The finance minister Mr. Arun Jaitley said that this shortage of cash is because of unusual sudden spike in the demand for money. Newspapers are citing causes related with supply where RBI failed to print enough currency notes despite warnings from the commercial banks. A cash crunch like this is surely a combined effect of both demand and supply side factors. Government has asked RBI to ramp up printing of currency notes in the aftermath of this cash crunch. According to the latest report , RBI is gearing up to print up to 1 lakh crore new notes to plug the cash gap. This is a big mistake. This cash crunch can be a boon in disguise. If this crunch continues then, in the long run, it can result into lower prices of all consumer and producer goods, which will increase the standard of living of Indians. How

The central board of secondary education (CBSE) in India is in a fix over the leak of mathematics and economics papers of standard X and XII respectively. After the leaks were revealed, students already gave their exams by the time the news of leak came out, CBSE and the HRD minister decided to retake these exams, which has created a storm of protest among the students. Parents of these kids are also enraged. Everyone is saying, why punish the students by retaking their exams when the culprits are the insiders of CBSE itself who leaked papers for money. For someone who is aware of the true nature of the state and its central planning economic system this event is not a surprise. As Ludwig von Mises showed more than a century ago, any kind of central planning is bound to fail because of its inherent problems of failure to economically calculate and Hayekian knowledge problem. The real focus of protest here should not be that the papers were leaked, but that the gove