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

DemonetisationSubscribe to Demonetisation

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.

Post-truth India

The Prime Minister’s year-end speech was a classic case of demagoguery.

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.

Theoretical Analysis of ‘Demonetisation’

With the aid of simple theoretical tools used in classroom lectures, the implications of the recent “demonetisation” exercise in India are analysed. It lends support to conclusions reached by other authors on the impact of demonetisation with the aid of available data. Following Robert Lucas’s Nobel lecture, the merits of economic policies that assume the form of random shocks to an economic system are questioned.

Money and ‘Demonetisation’

Like in the rest of contemporary capitalism, the Indian monetary system is based on state-backed credit money. Yet this hierarchical system of credit/social relations appears to us as a system of fiat money. This fetish of fiat money, analogous to Marx’s commodity fetish, is produced in the operation of credit system. The institutional and political arrangements of the Indian state amplify this inherent fetish. This conjuncture of elements produces a particularly robust fetish of fiat money in India, giving the Indian state more degrees of freedom over money than other states enjoy, a margin that the current government is now exploiting.

Demonetisation and the Rule of Law

The challenge in the Supreme Court and high courts to the current demonetisation exercise requires some serious discussion for what it tells us about the state of the rule of law and constitutional government in India.

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

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