Demon(et)ization - Part 1
Ever since Prime Minister Narendra Modi announced on US Election eve that 500 and 1000 denomination notes would not be any longer legal tender, the issue of demonetization has been a topic of heated discussions. The response to the move has been varied and interesting. While some political parties like TMC immediately demanded a rollback, others waited to catch hold of some straws to beat the government on the issue. There were multiple aims of this exercise- 1. Temporarily check flow of counterfeit currency which is used to fund terrorism, insurgency and drug cartels 2. Attack on black money hoarded in form of cash 3. Give a push to a less-cash society with better accountability Most criticism has been around the preparation or the execution post the decision. Let's look at the stated goals and the criticism to evaluate the decision. For the first two goals, demonetization as a move is effective only when it comes as a surprise and there is little time to make alt