An autonomous research institute under the Ministry of Finance

 

Demonetization: Cure and Care

23/11/2016

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There is no magic bullet that can reduce black/unaccounted income in an economy. The process that generates black money in an economic system is complex. Before acting on a remedy it is important to understand the process of black money generation. It is generally argued that complex tax system ...


Demonetisation: Don’t worry, Marry!

22/11/2016

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Reams have already been written about the government’s move to demonetize old 500 and 1000 notes. Actually, it is not a sudden death for these notes but a gradual extinguishment. The 500 rupee notes will be replaced, new 2000 rupee notes will be introduced and nobody knows of the 1000 ...


Tackling black money

17/11/2016

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On November 8, the US elected Donald Trump, and our government decided to trump black money. The move to discontinue the higher denomination notes in circulation is bold. However, boldness is not a virtue in and of itself. It needs good company. The decision creates some benefits, but it is ...


Demonetization: Revolutionary Step or Historic Blunder ?

17/11/2016

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The Modi government's hit on black money may well go down as one of India's biggest economic blunders, or his greatest achievement. How quickly things will normalize remains to be seen.  Whether one agrees with the move or not - it's implementation has surely been bungled badly and the collateral damage ...


A note on demonetization

16/11/2016

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The assessment, in this note on demonetisation, is not in the nature of a cost-benefit analysis and does not take account of: (a) cost to the government (of implementing this exercise), (b) hardship that the citizenry may have to put-up with, (c) the private costs that people may have to ...