On the night of November 8, Prime Minister Narendra Modi announced the withdrawal of 500 and 1000 rupee notes from the market, with immediate effect, with the aim of curbing black money. While this move at demonetisation was hailed with great enthusiasm when announced, the euphoria soon gave way to frustration, anger and resentment, as the ‘inconvenience’ faced by people continued to mount with banks and ATMs running out of the new notes.
Is the move worth the trouble people are going through? How will those in the informal economy cope? Will the micro overshadow the macro? What are the larger benefits? How are things likely to unfold, going forward?
In the fifth episode (above) of CPR’s podcast, ThoughtSpace, Richa Bansal talks to Dr Rajiv Kumar, a well-known economist and Senior Fellow at CPR, to deconstruct the debate on demonetisation more deeply, moving beyond the binaries.