Deepak Shenoy of Capital Mind simplifies what otherwise reads like a fairly complicated crisis.
To me this is the main thing:
Well the title should hardly be surprising. It will be a surprise if we see in some country, money power not leading to election results.
Julia Cagé has a piece on money power in French elections:
Experts disagree on impact of demonetisation citing all kinds of growth figures to suggest there was no or limited impact.
This is obviously their “eat cheese moment”. They fail to understand how the decision has shaken the belief in what is the crux of economy: payment system. There is continuous news of people not having faith in Rs 10 coin. There is a wide belief amidst people that Rs 2000 note could be denotified anytime. Thus, people want to shake off Rs 2o00 note right away.
Infact banks have been refusing to accept small denomination coins. RBI issued a warning against the same:
https://www.intelligenteconomist.com/economics-blogs/
Mostly Economics 