Implications for demand growth & sectoral inflation

Following the announcement by Prime Minister Narendra Modi, Indian currencies with denomination 500 and 1000 have ceased to be the medium of exchange from the midnight of 8th November, 2016. This demonetisation move is implemented as a tool to measure the stock ...

When dealing with distress, the single big idea for avoiding value destruction is speed of action. Delays destroy value. When we cope with failing firms (through a bankruptcy code) or failing banks (through a resolution corporation), the measure of institutional quality is the recovery rate, and the key determinant of ...

A new threat

The demonetisation by the government removed 86 percent of the currency in circulation. This was all currency being held in the form of Rs 500 and Rs 1000 denomination notes. These notes are currently being replaced gradually by notes of Rs 100 and Rs 2000 denomination. There are two problems ...