What do you think about the withdrawal of legal tender in India

It seems to me that they are trying to get rid of black money of which there are piles and piles with people who dont declare taxes. India is a highly cash based economy and this withdrawal of currency is not only a huge wealth transfer but might also put the economy in a deflationary shock. It definitely kicks the real estate sector into a bad spot. What is your opinion on this event. To me it seems like a rather extreme reaction by the government. http://www.thehindu.com/news/national/rs-500-rs-1000-currency-notes-to-be-out-of-circulation-from-midnight/article9320594.ece

Official response from submitted

It is extreme and reflects the extraordinarily extreme polarities of wealth and poverty in India, the extreme economic policies of the Modi government, and the threats to India's economy froma fast deteriorating global economy.


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  • Richard Wolff
    responded with submitted 2016-11-13 12:49:23 -0500
  • Vikas Tyagi
    published this page in Ask Prof. Wolff 2016-11-10 22:26:59 -0500

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