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Center for the Study for Finance and Economics

₹2,000 notes: Another Costly Mistake

The Reserve Bank of India’s (RBI) announcement of withdrawal from circulation of the ₹2,000 currency notes has caused much incredulity. Tamil Nadu Chief Minister M.K. Stalin quipped, “500 doubts, 1,000 mysteries and 2,000 blunders”, and Rajya Sabha member P. Chidambaram said, “Demonetisation has come full circle”. The Union government has distanced itself from the decision by letting the RBI announce it.

US Hit the Debt Ceiling: Rising Alarm to Budget Deficit

The US hit the debt ceiling of $31.4 trillion on January 19 and as early as June 1, the US government may run out of money to pay its bills if Congress does not raise or suspend the debt ceiling. US treasury secretary Janet Yellen reaffirmed that defaulting on the US debt obligation would be a “catastrophe” and would put into question Washington’s “global economic leadership”. The debt ceiling refers to the maximum amount of money the government can borrow to meet its financial obligations.