"The bank notes exchange is a smart move from a political perspective. However, it could disrupt commercial transactions for a while and slow down the economy. Moreover, this does not eradicate the deep roots of corruption.
"Corruption always prospers in an over-regulated economy: corruption is actually the way to get around red tape and bureaucrats. Therefore, deregulation would be the right path to limit corruption as such," Sorman told PTI in an interview.
People in large numbers are queueing up outside ATMs and banks to withdraw valid currency notes from vending machines and exchange demonetised notes with valid ones.
"Prime Minister Narendra Modi's way of governing by taking rash initiatives is a bit disappointing . A clear path with a programme known in advance would be -- it seems to me -- a more reliable way to lead the economy," Sorman, who has authored many books including 'Economics doesn't lie: A Defence of the Free Market in a time of Crisis', further said.
"The ban will certainly hit those who are holding black money in cash. Corrupt bureaucrats, politicians and many more with piles of cash must be wondering how to handle the situation and how long to wait before they try to solve it," Patnaik told PTI.
She, however, added that since the present high denomination notes are going to be replaced by new ones, it is not that cash will no longer be used in corruption and storing black money.
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories
Over 30 subscriber-only stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app