Most poor households have small, irregular and unpredictable incomes. This forces them to do high frequency financial transactions in order to smooth their consumption. They are transacting intensively in the process of cash-flow management, to transform irregular income flows into a stable flow of consumption from day to day. When the poor flounder in this high wire act, they may go hungry. These are not the concerns of the middle class: their income is much more stable, and they can use their savings as a buffer. I fear that much of the commentary on de-monetisation lacks an appreciation of this distinction.This evidence is from "Portfolios of the poor: How the World's Poor Live on $2 a day".
On a broader level, the discourse on currency swap (i) illustrates the importance of the knowledge of both micro and macro economics; (ii) displays huge gaps in our understanding of the economic lives of the poor. Or is it a reluctance to understand rather than a lack of body of knowledge?