In the News
Bonfire of the Rupees - De-monetisation in India
19th November 2016
It is one of the most dramatic policy decisions in recent years. Last week, Indian Prime Minister Modi announced that from midnight all 500-rupee (£6) and 1,000-rupee notes would cease to be legal tender. His argument was that this reform would help to erase a lot of black market money and help rid India of counterfeit notes used by terrorists. It is not a surprise that there has been a wealth of comment - some supportive, some highly critical - of this move.
This article in the Guardian is highly critical - they claim that "the two cancelled notes account for 86% of all the currency in circulation; over 90% of all transactions are conducted in cash, and over 85% of workers get their incomes in cash."
This Guardian editorial is highly critical of Modi's shock therapy for the Indian economy - read Modi has brought havoc to India
The Financial Times reports that "Until December 30, the notes, worth $7.50 and $15 respectively, can be deposited in bank accounts or exchanged in small quantities over the counter for new currency."
The Times of India is running a live blog on reaction to the decision and the initial fall-out.
Al Jazeerah News - Anger intensifies over India's demonetisation move
#DeMonetisation Nobel Prize Winner, Mohd Yunus of Gramiṇ Bank rejects note change as way to eradicate black money. https://t.co/GLpHDV9LwQ
— Randeep Singh Surjewala (@rssurjewala) November 19, 2016
Paying with plastic https://t.co/eQX4FNI1G1
— Simon Cox (@s1moncox) November 19, 2016
India's drastic steps to crack down on the black market: 'No country has done this kind of shock therapy' https://t.co/4YCbuo042Q
— Financial Times (@FT) November 18, 2016
Queues continue to grow amid reports that cash machines in India are running out of cashhttps://t.co/vVL3ouSOeP
— BBC News (World) (@BBCWorld) November 12, 2016
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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