Our economy has unfortunately created a huge cash hoard, disproportionate to the recognised money circulation. As 8/11 instantly turned off cash circulation and money changers, traditional adjuncts to our economic gearing, took over the system with outside help, to reconfigure cash flow in a famished and desperate eight per cent of the economy.
The various raids being conducted over the weeks following demonetisation on mining lords and others, including bureaucrats and businessmen, cannot but be a follow-up on already available intelligence.These were due even prior to November 8.
To say this is being done to underscore the current campaign against tax evasion, may be uncharitable and takes away the merit of the Government's bold move. The colour of the recovered cache of banned Rs 500 or the new Rs 2,000, remains black. December 2016 could provide important insights into the operating mechanisms of the economy as it is today, and what they would be in the coming months.