The term "monetary anemia" refers to a shortage of currency, which can lead to a contraction of economic activity. During the early medieval period in India, the commercial economy did experience some degree of monetary anemia, although the extent of this phenomenon is a matter of debate among historians.

Some historians argue that the early medieval period in India saw a significant decline in commercial activity due to the scarcity of currency. This scarcity was caused by a variety of factors, including the decline of long-distance trade, the weakening of central authority, and the hoarding of precious metals by powerful elites. The lack of currency made it difficult for merchants to conduct business, which in turn contributed to a contraction of the commercial economy.

Other historians, however, have challenged the idea that monetary anemia was a major factor in the decline of the commercial economy during this period. They argue that there is little evidence to suggest that there was a significant shortage of currency, and that other factors, such as the decline of long-distance trade and the rise of regional economies, were more important.

1.  R.S. Sharma: R.S. Sharma, a well-known historian, argued that the lack of currency was a significant problem during the early medieval period in India. According to him, this led to a decline in long-distance trade and a contraction of the commercial economy.
    
2.  D.N. Jha: D.N. Jha, another prominent historian, challenged the idea that there was a significant shortage of currency during this period. Instead, he argued that the commercial economy declined due to other factors, such as the rise of regional economies and the weakening of central authority.
    
3.  Irfan Habib: Irfan Habib also questioned the idea of monetary anemia as a major factor in the decline of the commercial economy. He argued that the rise of regional economies and the decline of long-distance trade were more important factors.
    
4.  Shireen Moosvi: Shireen Moosvi suggested that while there may have been a shortage of currency in some regions, this did not necessarily affect the entire commercial economy. She argued that the impact of monetary anemia varied depending on the specific context and region.

This transitory nature of early medieval India is a shift away from the conventional model of early medieval India. The conventional model of early medieval India is based on the assumption that there was a continuity of ancient Indian polity, culture, and society in this period1. According to this model, early medieval India was dominated by large, centralized, unitary kingdoms with strong bureaucracies, such as the Guptas, Harshavardhana, Chalukyas, Pallavas, Rashtrakutas, Pratiharas, Pala etc. This model also implies that there was no significant change or decline in trade, urbanism, or social mobility in this period1.

However, this model has been challenged by various scholars who have pointed out the limitations and contradictions of this view. They have argued that there were major changes and transformations in early medieval India that cannot be explained by this model. Some of these changes include:

The emergence of new regional identities and languages1.
The expansion of agriculture and rural settlements4.
The proliferation of land grants and revenue assignments to various groups43.
The decline of long-distance trade and urban centers43.
The rise of feudal relations and caste differentiation43.
The fragmentation of political authority and decentralization of states153.

The transitory nature of early medieval India refers to the changes that occurred in various aspects of Indian society, economy, polity and culture between c. 600 – 1200 CE12. Alternative models try to capture the diversity, complexity and dynamism and emphasised on its tranitory nature. Some of the ingredients of this transition are:

The decline of trade, urbanism and centralized states that marked the ancient period3.

The emergence of regional kingdoms with decentralized administration and land grants to various groups124.

The expansion of agriculture, rural settlements and caste system as a basis of social hierarchy13.

The development of new religious movements such as Bhakti, Tantrism and Islam that challenged Brahmanical orthodoxy15.

There are different models to explain this transition, such as feudalism, peasant state and society, and integrative state and social formation.

The Indian feudalism model, which argues that early medieval India was characterized by a self-sufficient, closed rural economy with a bipolar world of lords and peasants, decentralized feudal states, and proliferation of castes1. However, it has been criticized for being too Eurocentric, ignoring regional variations, and overlooking the continuities with ancient India

The peasant state and society model, which proposes that early medieval India was marked by a Brahmana-peasant alliance and segmentary state with pyramidal repetition of structures in autonomous segments (Nadus)1. it has been challenged for being too idealistic, neglecting other social groups, and overestimating the autonomy of Nadus3.

The integrative state and social formation model, which suggests that early medieval India witnessed the phased structural evolution of imperial kingdoms or regional/supra regional states and societies across regions. It has the strength of demonstrating the diversity, dynamism, and complexity of early medieval India across regions4. However, it has been questioned for being too optimistic, underestimating feudal tendencies, and glossing over conflicts and contradictions3.