Wednesday, January 04, 2017

How much black money was recovered by "Demonetization"?

This is a big question that there are few clear answers for.

We had heard numbers like $45B before [1] now based on public sources, it seems the GoI intends to cut its borrowing by $2.64B  in the coming year [2].

When you compare this with the typical numbers reported in a VIDS (Voluntary Income Disclosure Scheme)- it is a comparable number.

So after all the hassle created by demonetization - it doesn't look like it has generated that much more income than a VIDS.

There is a law of diminishing returns on these things. I will leave it to the Modi Bhakts as an exercise to figure out what that is.

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