Demonetisation was an innovative decision but it was least needed to serve the objective underlying its implementation. However it is well realised that it was an economic decision taken with political objectives. History is witness to negative fallout of economic decisions taken to serve political motives. In my opinion the timing of demonetisation was chosen ostensibly before some crucial state elections. Whatever was the wisdom behind its implementation, it was ill planned, with manifestations of dictatorial verdict.
It is generally believed that demonetisation was used to weed put black money. But the question is which black money?
After independence Indian economy has been running on two pillars of currency, one that ran through banking channels & other off banking channels. We assigned the definition of black money to latter. Black money by definition and perception is the money, which doesn’t earn tax to the exchequer hence black. Is it really black, my interpretation is NO. Read more
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