Demonetization in India: The Good, Bad and Ugly Facets

Since 2014, the MODI government has launched a campaign to curb money laundering and has adopted a new plan to curb money laundering. Even though the nonmonetary economic case is powerful, there may be some political and economic calculations related to the government. It is well known that unpaid cash, particularly high cash, plays an important role in financing election costs that exceed authorized limits. The authors critically investigated the process of non-monetization, incentives and tragedies of non-monetization, serious impacts on various fields and concluded that the economy needs to embark on a path of high growth. Discussing whether the discussion around India is good, whether it is working well, or whether behavior is bad or not, during a bad month or so that makes employment opportunities and housing construction cheaper in urban areas cheaper And it may have been better done. The power to non-monetization seems to oppose the government's difficulties quoting the public. Naturally, highly promising and enthusiastic non-monetizing acts will succeed. But people can confidently make a conclusion, its intention is very good

Indeed, the exercise known as "democratization" (DeMo) produced effects that can be expressed as "good, bad", "flat and ugly". I will explain this later. In addition, because economists often consider short-term, medium term, long-term impacts, now is a good time to consider whether policies have desirable effects. Considering the fact that corruption in all sectors of Indian society is embarrassing and the fact that fraud is serious as a measure aimed at investigating corruption and wage war, DeMo's intention is of course good. Unless you receive shock therapy, you can not rule out harm of money laundering. In addition, as the metaphor used by many people call DeMo an Indian economic activity, the fact that the patient is healthy means that certain benefits certainly arise from policies.

Naman: Good morning. We are here to discuss the non-monetization of Indian 500 and 1000 Rupee notes. Democratization is a very bold action taken by the government and they aim to fight against social diseases such as black money, false money, corruption. In my opinion, this is a strong indicator of the government. Rini: Hello, everyone. I have a slightly different view of the whole non-formal drama. Although this is a good move, I believe that the government and the authorities are not ready enough as this movement has already affected more than 13 billion rupees. The government hopes that everyone has no cash, but they are not ready.

Non-monetization in India is not a day's decision. Democratization of India was announced in November 2016, but the government took various measures to enable the democratization of the country. Initially the government had asked people to open a free account at Yan Dhan Yojna Bank so that everyone can deposit their old currency into their bank account after the country's non-monetization. On the other hand, not all transactions were done legally in the country due to the government's loss due to offline transactions. Therefore, in the case of non-monetization, the government is about to conduct most transactions online. In other words, the government wants to increase cashless transactions in that country. These steps contribute to China's economic growth. Non-monetization in India has several negative effects, but these adverse effects can be avoided or ignored through national development.