Demonetisation: Flawed in planning, not in principle

There was a short-term price but that may dissipate as resources idled by demonetisation are redeployed elsewhere. But are we prepared for this short-term pain?

The anniversary of demonetisation calls for an exploration of the rather empty space between paeans to its glory and hysterical diatribes. Its purpose was to control black money — a purpose that raises two issues. First, was control of black money desirable?  Second, was demonetisation the optimal method?
 

The answer to the first question is not quite obvious. Before November 2016, our economy ran largely on black money. Sixty per cent of the value of any real estate transaction was demanded and paid in cash and was unreported and tax-exempt. The construction industry was founded on a mountain of black money. Linked with it