Realpolitik seems to be real reason for Modi's rupee manoeuvre

THE Indian government's move to demonetise the rupee by immediately withdrawing all 500 rupee and 1,000 rupee notes from circulation was widely touted as a way to control the spread of "black" or tax-evaded money in the economy. But while it could have little effect on the pervasive spread of the parallel economy, it could help the government control the deficit in the budget to be presented early next year.

The stated reasons for withdrawing the notes from circulation were e…