Demonetization in India: The Good, Bad and Ugly Facets

Abstract

Since 2014 onwards the Modi government is campaigning for curbing Black Money and has ad vented new schemes to curb the same. Even as the economic case for demonetization is strong, it is possible that there were also some political economy calculations that weighed with the Government. It is common knowledge that unaccounted for cash, especially in high denominations, plays a big role in financing election expenditure beyond the authorized limits. The authorshave critically examined the process of demonetization, boons and banes of demonetization, key impacts on various sectors and have concluded that necessary to put the economy on a high growth path that would generate more jobs and make housing in the urban area more affordable to the poor. For over one month, discussion all over India is going as to whether the move is good, with great execution or the move is bad and could have been better executed. The anti-demonetization forces seem to have rallied against the government citing common man's hardships. It is beyond prediction that whether the demonetization move started with great hope and enthusiasm will succeed or not. However, one can safely conclude that the intentions are very good.