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Orange Books International Demonetization and the Black Economy by Arun Kumar
On 8 November 2016, the prime minister announced the immediate cancellation of all_x000D_Rs 500 and Rs 1000 denomination notes, wiping out 86 per cent of the currency in_x000D_circulation. India's well-functioning economy went into a tailspin._x000D__x000D_This move, it was claimed, was made to wipe out corruption, deter the generation of black_x000D_money, weed out fake Indian currency notes and curb terrorism. Overnight, people in India realized that the cash in their pockets had no value. A window of fifty days was granted to 1.3 billion people to convert their old notes into new ones. _x000D_Businesses, especially in the unorganized sectors, came to a grinding halt. Patients in hospitals faced huge problems, farmers had difficulty buying inputs, weddings were scaled down, and fishermen watched their catch rot. Many lost their jobs and could not support their families._x000D_A year later, the RBI announced that 99 per cent of the old currency notes had been deposited with_x000D_it. India continues to grapple with the effects of this move. The black economy has not been_x000D_dented; counterfeiting and terrorism continue; the credibility of the RBI, banks and currency is_x000D_damaged; the accountability of the Parliament and the prime minister has been eroded; and the social divide_x000D_has widened. There have been many arguments and counter-arguments from both sides, but they have_x000D_missed the complete picture._x000D_Demonetization and the Black Economy, for the first time, lucidly explains the story_x000D_of demonetization along with its effects on the economy._x000D_show more