[Related to the Chapter Opener on page 478] In November
2016, the Indian government decided to withdraw paper
currency that made up more than 86 percent of the
value of all rupee bills in circulation. An article in the
Wall Street Journal published shortly after that decision
described a small merchant in India as having “traded
one customer a kilogram of potatoes, cauliflower and
tomatoes for half a liter of honey. That was a good
deal, he says. In normal times, the honey would be 120
rupees in the market (around $1.80) and the vegetables
70 rupees.” Is this merchant’s ability to arrange a barter deal with a customer an indication that the Indian
economy doesn’t actually require money to function
efficiently? Briefly explain.