On the two year anniversary of #Demonetization, there is nothing new to say, except that it continues to be the disaster on a mammoth scale we all predicted, with long-term effects and a major slowdown of economic growth. #DemonetisationDisaster 1/n
My first column from Nov 2016 on the faulty assumptions made by the government, fundamentally equating cash with black money - a terrible mistake in a country like India that runs on cash and has a huge informal sector mostly affecting the poor. 2/n realclearmarkets.com/articles/2016/…
My second piece from Nov 2016, co-written with @lawrencehwhite1 on some of the seigniorage effects of demonetization and the one-time wealth transfer to the government, and also the lesser known and discussed Cantillon effects from the non-uniform injection of the new notes. 3/n
My third piece from Jan 2017, co-written with @lawrencehwhite1 critiquing the defense of demonetization as a revenue windfall (by economists Bhagwati, Dehejia, and Krishna). We argue that one must count BOTH costs and benefits of demonetization. 4/n livemint.com/Opinion/0RUMX1…
My fourth piece on from Sept 2018 on the RBI data showing that almost all (99.3%) of the old notes was returned. Indians, quite adaptive to a very harsh and unpredictable state, used their jugaad to circumvent the intended effect of demonetization. 5/n livemint.com/Opinion/lV1Bpu…
My discussion on demonetization on the Seen and the Unseen podcast hosted by @amitvarma where we discussed the economic disaster as well as the gross immorality of the demonetization policy. Must listen to Amit's monologue in the beginning. 6/n thinkpragati.com/podcast/the-se…
Even though the government kept changing the goalposts, not a single one of these goals have been met. If there was ever a case of a policy measure that was a complete and utter failure, imposing enormous costs with no benefits, this tops the list. #DemonetisationDisaster 7/n
On the 2nd anniversary of demonetization, there is little new left to say. An unconscionable and unconstitutional act, and the greatest single act of theft committed upon the Indian people. As always the poor were burdened the most, and the political class escaped unscathed. n/n
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