Harvard economists Carmen Reinhart and Kenneth Rogoff have given a positive assessment of India's attempts to clean up its "black market" for money, but have concluded that the scale of its plans bears no relation to anything that has gone before.



"This time is different, this time is really different," Reinhart told a panel at the World Economic Forum in Davos, quoting the title of the book she authored in 2009 with her Harvard colleague.



"In terms of the scale and impact on potential economic activity," she added, suggesting that it would be "short term pain, long term gain" for the developing nation.



Hampered by so-called black money that is undeclared, the government announced last year that 500 and 1,000 rupee banknotes would be withdrawn from circulation. The short time span for the ban left the country in chaos with long lines forming outside banks and ATMs. Around 86 percent of the value of the cash in circulation in India was targeted.