, Columnist
India's Ill-Timed Paper Chase
With markets buffeted by the U.S. election, this is an odd time for a deflationary shock.
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India is risking about $211 billion of purchasing power to make a leap into a cashless future. The landing won't be smooth, but the change could be as far-reaching for the global economy as the U.S.'s 1873 decision to scrap the silver dollar.
Outlawing high-denomination banknotes, which account for 86 percent of the 16.4 trillion rupees ($245 billion) of currency in circulation, will sting India Inc. Still, the benefits of Tuesday night's surprise demonetization could be both large and enduring.