Black Money – Domestic and International Efforts

[op-ed snap] Artificially created recession I

  1. Prior steps that should have been taken: Prior large increase of lower denomination notes should have been ensured through banks and ATMs
  2. This would not reduce overall money supply and a normal level of activity could be maintained
  3. Condemning the step: Purchasing power of the population suddenly taken away, reducing the level of economic activity and causing distress to people
  4. Denomination of notes has nothing to do with the existence of black money, which is not held in hoards of notes but is a circulation of unrecorded and undeclared incomes
  5. Monetary authorities or government itself doesn’t believe that black money is connected to ‘high denomination’ Rs.500 and Rs.1,000 notes
  6. If they did, they would not have chosen to issue a new note of Rs.2,000 which is of even higher denomination
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