Demonetization could cause temporary pain to those who have unaccounted incomes
One of the biggest issues which helped Prime Minister Narendra Modi capture power in 2014 was the promise to crack down on corruption and black money. Midway in his tenure, he has announced scrapping of currency notes of ₹ 500 and ₹ 1,000 to curb black money and other illegal activities such as counterfeiting of notes and money laundering. Given the fact that ₹ 500 and ₹ 1,000 notes account for more than four-fifth of the currency in circulation, the move is likely to create significant chaos in the economy in the short run. Is the pain worth it?