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

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What is the Story of Black Money in India?

Ill-conceived policy and weak laws aid the flow of unaccounted money in India.

Did Demonetisation Accelerate Financial Inclusion?

The claim that removing cash would improve financial access for the poor has become a fallback argument for demonetisation, despite notebandi failing to achieve its other objectives. Like many other arguments made for abolishing cash in favour of digital payments, this claim does not stand up to scrutiny.

Notes from India’s State Border Highways: Changing Rules, Institutional Corruption and Hoping for Too Much from GST

This essay looks at institutionalised corruption and its effect on Indian roadways, especially the Golden Quadrilateral. Despite higher speeds, delays of crossing states borders nullifies gains from speed. Will the goods and services tax change things?

Bringing Money Back

Estimate of illicit financial outflows and the demand to repatriate these are fraught with issues. First, there can be reversals in direction of flows of illicit money thereby making it tough to ascertain undeclared wealth held abroad. Second, even if the money is traced by the authorities of country, institutional impediments may prevent repatriation. Third, once such money is repatriated it may be more useful to employ these to set up trade transparency units.

India’s Marie Antoinette Moment

Narendra Modi’s promotion of a “cashless society” shows the government’s disconnect from ground realities, and harks back to Marie Antoinette’s famous “let them eat cake” response to learning that peasants had no bread to eat. Clearly, a cashless or less-cash economy will not be achievable in the near future, and may also not be desirable.

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: 1978, the Present and the Aftermath

In the context of the demonetisation of ₹500 and ₹1,000 notes, the issuance of currency and its different denominations are traced over time, while also tracking key macroeconomic features of India's changing economy over the decades. Further, the possible immediate and longer term economic effects of demonetisation are discussed.

Lost Due To Demonetisation

Sudden demonetisation of ₹500 and ₹1,0000 notes, an elimination of existing money stock that enables economic transactions, is bound to have an economic impact, apart from penalising those who hold this money as store of their tax-evaded illegal wealth. Considering various possible scenarios, a loss of gross domestic product will be inevitable.

Curry Mixed With Demonetisation and a Pinch of Pesticide

When the government outlawed 86 per cent of India’s currency, burying his hope of selling land to pay off growing debts, Varda Balayya of Dharmaram village in Telangana killed himself and tried to poison his entire family by mixing pesticide in their chicken curry

Curbing the Black Economy

The Bharatiya Janata Party-led government, which promised to tackle the generation of black incomes and to even bring black money back to India, has over the past two years made many announcements that have little bite, like double taxation agreements, among others. Without strong deterrence, curbing the black economy is difficult. That is why widening the direct tax base from 1% of the population, evident from the recently released tax data, has not been feasible.
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