Wednesday, November 16, 2016

Demonetization: an oblique view


The first was when Rs1,000, Rs5,000, and Rs10,000 notes were taken out of circulation in January 1946, a year and a half before the country won independence from the British. The Rs10,000 notes were the largest currency denomination ever printed by the Reserve Bank of India, introduced for the first time in 1938. All three notes were reintroduced in 1954.
There are differing views about the present demonetization, as far as black money goes. That’s because, with people, black money need not be in cash, rather in a more convenient form - as undisclosed accounts in Swiss Banks. In short, the demonetization need not affect the biggest fish. And I am sure, those in positions are aware of this. If so, what could have led to this decision?
Is it poll-dictated sensationalism? Or is it a ‘wise’ suggestion from someone who wanted to pacify a big man? Or is it due to certain manufacturing errors in some of the notes in circulation, as suggested in a few sites?
Whatever it may be, let me think of the after effects. There is nothing without some benefits to each and everyone, just as there is nothing that has no harm to anyone. The popular feeling, I think, is that this will affect the huge hoarding of black money and make our economy stronger. And we all can expect reduced interest rates, increased production, rise in pay, bonus etc. Will the popular view prevail? Time will tell soon.

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A Thought

Governance by Default, till Democratically Removed