Indian Prime Minister Narendra Modi stunned his country earlier this month when, out of the blue, he declared 85 percent of the nation's currency notes null and 
ironypoisoning via Foter.com / CC BY-SAvoid.
ironypoisoning via Foter.com / CC BY-SAvoid.India's two highest rupee notes — Rs. 500 ($7.50) and Rs. 1,000 ($15) — will no longer be legal tender, and will be replaced with redesigned Rs. 500 notes and new Rs. 2,000 bills. Indians can swap a relatively small number of old bills for new ones by the end of the year, but only at designated banks and with proof of ID. Anyone trying to swap large sums of cash that they can't legally account for will be subject to investigation and legal action. And all the unswapped currency will stay with the government, a massive transfer of wealth from private citizens to the state/
Modi's fans see this as an audacious move to smoke out untaxed "black money" from India's informal economy, which constitutes anywhere from 25 to 40 percent of the nation's GDP. But in reality, this demonetization scheme is the equivalent of killing the patient to cure a headache. And it marks an end to India's three-decade flirtation with market liberalization.......
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