Subramanian explains why note ban had to be draconian for political success

The former chief economic adviser explains in his new book why vice became virtue when it concerned demonetisation

On 8 November, in a dramatic nationally televised speech that I watched in my room in North Block, the prime minister announced that the top two high-denomination currency notes of Rs 500 and Rs 1000 would cease to be legal tender; that is, they would no longer be accepted as a government-certified means of payment. It was an unprecedented move that no country in recent history had made in normal times. The typical pattern had either been gradual demonetisations in normal times (such as the European Central Bank phasing out the 500-euro note in 2016) or sudden demonetisations in extreme