Between 8th November and 31st December 2016 the Indian government instituted one of the biggest demonetisation exercises in the world by withdrawing 86 percent of all currency in the form of Rs 500 and Rs 1000 notes. This paper looks at the debate surrounding the demonetisation exercise and attempts to provide a political economy logic. Interrogating the various arguments around demonetisation, it argues that demonetisation has been reduced to a political posturing as the economic consequences remain highly debated.
