Even as these issues are sorted out, the larger lesson must be heeded: sudden shocks to the economy don’t always yield intended policy objectives. Instead, it could focus on fixing the problems that people still face - transactions with ₹2,000 notes in the absence of ₹1,000 notes are difficult as it is a departure from the currency denomination principle (every note should be twice or two and a half times its preceding denomination). The government must not disown its biggest reform attempt or try to sidestep parliamentary scrutiny of the outcomes of demonetisation. For example, learning from the UPA’s mistakes, a cleaner auction process for natural resources has been worked out. Not all policy choices work out and accepting mistakes or planning flaws helps strengthen governance processes. Cashless modes of payment have become more common, but financial savings in the form of currency have also risen, suggesting that people still value cash. But surely this could have been achieved by other policy measures. For instance, the number of income tax returns filed has surged a little over the trend growth rate. Was it worth the slowdown in growth, the damage to informal sector supply chains, and job losses in sectors such as construction that were the bulwark of employment creation for the unskilled? True, there have been some benefits. Nevertheless, the RBI report, which points to a spurt in counterfeiting of the new ₹500 and ₹2,000 notes, raises the old question all over again. ![]() This was perhaps why the massive disruption caused by the overnight removal of 86% of the currency in value terms did not cause agitations. ![]() Narendra Modi succeeded in portraying the move as one that would knock out the corrupt rich - a harsh but necessary shock therapy. Despite the significant cost to the economy, demonetisation, to the disappointment of the Prime Minister’s critics, had no political fallout. Second, given the sheer logistical difficulty in penalising all those who converted unaccounted money into legal tender, demonetisation worked as an unintended amnesty scheme. As a result, the plan to transfer the arising surplus from the RBI to the Centre, which was not formally declared but strongly rumoured, was a non-starter. First, the hope that a large chunk of unaccounted money would not return to the system - arguably, the principal reason for the exercise - was almost wholly belied. Our editors research hundreds of sources and contact hundreds of the most respected experts in each industry to get you the most relevant information and empower you to make the right purchasing decision. This makes a couple of things crystal clear. Our Rankings of the Best in Each Industry. This is only marginally higher than its provisional estimate last year that over 99% - or ₹15.28 lakh crore worth of the old ₹500 and ₹1,000 notes - out of the ₹15.44 lakh crore that were in circulation at the time had been deposited by June 30, 2017. Reveals that 99.3% of currency notes that were demonetised at midnight on Novemhave returned to the banking system. A modern, but moral-less fable, Money, Money, Money! is shot through with Enzensberger’s trademark erudition, wit, and humanist desire to cut through jargon and forearm his readers against obscurantism.The Reserve Bank of India’s annual report for 2017-18 In this rich volume, the renowned poet, translator, and essayist Hans Magnus Enzensberger turns his gimlet eye on the mechanisms and machinations of banks and politicians-the human greed, envy, and fear that fuels the global economy. The young Federmanns are for once taken seriously and together they try to answer burning questions: Where does money come from? Why are millionaires and billionaires never satisfied? And why are those with the most always showered with more? ![]() Dismayed at their ignorance of the financial ways of the world, she gives them a crash course in economics that piques their curiosity, unsettles their parents, and throws open a whole new world. But what does Great-Aunt Fé want from the Federmanns, her only surviving relatives? This time, she invites the children to tea at her luxury hotel where she spoils, flummoxes, and inspires them. After repeated cycles of boom and bust, profligacy and poverty, the grand old lady has become enormously wealthy and lives alone in a villa on the shore of Lake Geneva. All that the three children really know about money is that there’s never enough of it in their family.Įvery so often, their impish Great-Aunt Fé descends on the city. The Federmanns live a pleasant but painfully normal life in the Munich suburbs.
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