Demonetization may make sense from political cost-benefit stance

The Times of India cited research by Amartya Lahiri, a UBC economist, about the demonetization of the majority of India’s circulating cash.

Lahiri studied the measure from a cost-benefit framework and found that probable benefits are not enough to justify a measure on this scale.

“All public policy must rely on a clear-headed cost-benefit analysis. This one fails that test,” Lahiri wrote.