Curtis writes: Modi’s surprise demonetization was a huge political gamble. Soon we’ll know whether it is likely to pay off. Nearly 700 state assembly seats will be decided in the five upcoming elections, including in Punjab, Manipur and Uttarakhand. If the BJP does relatively well, Modi will have reinforced that he has the political wherewithal to drive change in the world’s largest and most complicated democracy. – The National Interest
And how did Hayek respond? He didn't. As Wapshott puts it, "Hayek declined to enter the ring." Much later, Hayek would say that this was a "failure for which I have reproached myself ever since." Part of Hayek's reason, though, was that he was trying to finish a competing book, The Pure Theory of Capital, and had become "hopelessly stuck in chapter 6." Hayek was still trying to work out, as young Austrian economists still do today, the effects of monetary policy, via interest rates, on the structure of production.