When the Prime Minister Narendra Damodardas Modi made an announcement at 8.15 pm on 8th of November, 2016 about demonetisation of the high denomination notes, viz., the Rs 500 and Rs. 1000 currency notes, people had a very mixed response. People initially supported the move thinking that this would help the economy to become clean: the black money would be wiped out, terrorism would be controlled and fake notes would be removed from the economy. But the trouble people had to undertake, reported deaths in the media and the resultant outcome of demonetisation: all had led to diminishing support from the masses. As the basic objectives of demonetisation were found not to be convincing, the Government came out with a grand narrative which included objectives like removing corruption, digitalisation of the economy, formalisation of the economy, increased tax returns, increased tax revenue earning etc.
This paper is an attempt to analyse demonetisation as a process, with particular emphasis on the demonetisation undertaken in November, 2016. The paper starts with basic meaning of demonetisation, why it is undertaken, whether other countries across the world have succeeded or failed with demonetisation, India’s experience with demonetisation, how was demonetisation planned in 2016 and an overall assessment, including the grand narrative that has come up over time.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Why is Demonetisation Undertaken?
- Historical Underpinnings
- Successful Cases
- Unsuccessful Cases
- Demonetisation in India
- The Demonetisation of 1946
- The Demonetisation of 1978
- Demonetisation 2016
- Implementation Strategies followed in 2016
- Titbits of Demonetisation 2016
- RBI's Views on the Drive to Demonetisation: The Observations made in the 561st Meeting Minutes of the RBI Board of Directors
- Evaluation of the Basic Objectives of Demonetisation
- The Grand Narrative: Reading the Political Economy of Demonetisation
- Narratives vs Counter-Narratives of Demonetisation
- Is Demonetisation a Total Failure? A Critical Assessment on Select Macro Fronts
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper provides a comprehensive analysis of demonetisation as a process, focusing on the demonetisation undertaken in India in November 2016. It explores the reasons for demonetisation, analyzes historical cases of demonetisation from around the world, and examines India's previous experiences with demonetisation. The paper also delves into the implementation strategies employed during the 2016 demonetisation drive and critically assesses its objectives and outcomes.
- The economic and political context of demonetisation
- Historical precedents of demonetisation and their consequences
- The implementation and impact of the 2016 demonetisation in India
- The role of narratives and counter-narratives in shaping public perception of demonetisation
- The potential benefits and drawbacks of demonetisation as an economic policy tool
Zusammenfassung der Kapitel (Chapter Summaries)
The introductory chapter defines demonetisation and outlines its primary purposes. It explores various objectives of demonetisation, highlighting the common goal of replacing an existing currency system or introducing new security features.
Chapter 2 delves into the rationale behind demonetisation. It explores the broad objectives, including currency changeover, replacement of old currency, and implementation of state policies such as combating corruption and tax evasion.
Chapter 3 examines historical cases of demonetisation, showcasing successful examples from the UK, Australia, the European Union, Pakistan, and Zimbabwe. This chapter also analyzes unsuccessful cases from North Korea, the Soviet Union, Myanmar, Nigeria, and Ghana, highlighting the potential pitfalls and negative consequences of demonetisation.
Chapter 4 focuses on India's experience with demonetisation, including the events of 1946 and 1978. It then delves into the 2016 demonetisation, outlining its implementation strategies and the immediate reaction of the public.
Chapter 5 explores the various perspectives on the 2016 demonetisation, including the observations made by the Reserve Bank of India. It examines the intended objectives of the demonetisation drive and evaluates their effectiveness.
Chapter 6 delves into the "grand narrative" surrounding demonetisation, exploring the contrasting narratives and counter-narratives that emerged in the public discourse. It also critically assesses the impact of demonetisation on key macro-economic indicators.
Schlüsselwörter (Keywords)
The paper focuses on key concepts and terms related to demonetisation, including black money, digitalization, formal economy, grand narrative, and the political economy of demonetisation. It analyzes the impact of demonetisation on various economic and social spheres, exploring its potential to address issues like corruption, tax evasion, and the informal economy.
- Quote paper
- Bhaskar Sarmah (Author), 2018, Demonetisation 2016. A Narrative of Political Economy and Beyond, Munich, GRIN Verlag, https://www.grin.com/document/492151
