ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Counterfiet currencySubscribe to Counterfiet currency

Economic Rationale of ‘Demonetisation’

The government’s claims about the fruits of “demonetisation” of ₹500 and ₹1,000 notes are analysed. The five claims—fighting terrorism, “black money,” gaining fiscal space, reducing interest rates, formalising informal economy—are scrutinised from an economics perspective. 

Demonetisation

The stated reasons for the 8 November announcement to demonetise ₹500 and ₹1,000 notes such as eradication of black money, counterfeit currency, and paving the way for a cashless society are examined. These issues are not addressed by demonetisation and do not justify the suffering this move has unleashed on the poor and the middle classes.

Back to Top