Digital Economy Post Demonetisation

Demonetisation has pushed India in the race towards a digital economy. It is unprecedented in various aspects such as efficiency in management, tracking of economic transactions and real time information about the illegal activities being perpetrated under the nose of the Government agencies. Digital Economy | Forms of Transactions The most convenient form of digital …

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Time to introduce ‘Universal Basic Income’

The recent demonetisation has spurred the fears of decreased demand, i.e. low circulation of money supply as one of its effects, especially by the erstwhile hoarders of black money. Lower money supply can impact GDP growth by reduced consumption expenditure in the near term as there is a temporary liquidity crunch because of the government …

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Addressing the key criticisms of the ‘demonetisation drive’

Let us take the five key criticisms of demonetisation – Flow vs stock, price of real estate and money, SME impact, lower consumption and inconvenience – are more than negated by the long term effects of formalisation. Let’s look at each criticism in diminishing order of importance in more detail: Flow vs stock: • Analysts …

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Demonetisation of Indian Currency

Demonetisation of the Indian currency was a surgical strike against black economy, which was initiated with the Prime Minister Narendra Modi’s announcement that RBI was cancelling the legal tender of high denomination currency notes of Rs 500 and Rs 1,000. An expected hullaballoo followed the announcement with people getting restless about the second demonetization drive …

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