Demonetisation - Yet Another Point of View
We debate and argue. We do it a lot because we skip a few stages of research, discussion and understanding. Let us try to not to do it here. Let’s assume that we are yet to take a position on the subject. Demonetisation should not require much technical understanding of economics or monetary economics, I think. Let’s begin with something everyone agrees with. There’s a price everyone is paying for demonetisation. The farmers, the businessmen, the bureaucrats, the Reserve Bank of India, the banks, employees of banks, employees of cash management agencies, foreign tourists in the country, those who’ve hoarded cash by evading taxes and those who’re dealing in cash for illegal businesses. When one thinks of it, cash binds us more than cricket and religion. We’re paying a price in anticipation of a few benefits. Three benefits to be precise: One, an attack on makers of counterfeit currency, two, an attack on the corrupt and three a movement towards a cas...