Well, lots of searches are happening in Google to understand
the potential good and bad side of Demonetization.....We are not getting the
clear answer of What will be the possible impact of demonetization of course it
will have both good and bad side but in the end Question is ....In the long run
will we be benefited or not ?.
.. getting a logical answer is difficult because leading Economists are divided on this ...Amartya Sen, Kaushik Basu, Dr. Manmohan Singh are against the move, Arvind Virmani, Bibek Deb Roy, Surjit Bhalla are in favour of the Demonetisation but Mr. S. Gurumurthy's view on Demonitisation is quite logical ...the way he explained myth behind jobless growth story is one of the intellectual article available in internet in favor of Demonitiation ...
.. getting a logical answer is difficult because leading Economists are divided on this ...Amartya Sen, Kaushik Basu, Dr. Manmohan Singh are against the move, Arvind Virmani, Bibek Deb Roy, Surjit Bhalla are in favour of the Demonetisation but Mr. S. Gurumurthy's view on Demonitisation is quite logical ...the way he explained myth behind jobless growth story is one of the intellectual article available in internet in favor of Demonitiation ...
" ....The unmonitored HDNs
roaming outside banks began driving up the gold and land prices by black cash
and the stock prices through Participatory Notes (PNs) — which are largely
hawala transfers out of India — that came back pretending as foreign investment
in stocks. The PNs rose from Rs.68,000 crore in 2004 to Rs.3.81 lakh crore in
2007.
How did the asset inflation lead to the UPA’s “high growth”? Inflated asset prices to the extent realised by sale got accounted as part of income and included in GDP. Large part of the gains on stock sale got added to GDP with very little tax under Securities Transaction Tax. The spurious wealth effect also led to high-end consumption. The annual private consumption growth averaged 18 per cent till six years to 2009-10 — 80 per cent over the NDA average. The fake wealth effect, powered by HDN cash, scripted the UPA’s “high growth” story. "
How did the asset inflation lead to the UPA’s “high growth”? Inflated asset prices to the extent realised by sale got accounted as part of income and included in GDP. Large part of the gains on stock sale got added to GDP with very little tax under Securities Transaction Tax. The spurious wealth effect also led to high-end consumption. The annual private consumption growth averaged 18 per cent till six years to 2009-10 — 80 per cent over the NDA average. The fake wealth effect, powered by HDN cash, scripted the UPA’s “high growth” story. "
pls click the link to read the complete article Not a tragedy, but the remedy
yes of course Government Decisions are always backed by political motives
" ....It was unleashed as a
political strategy to checkmate regional parties (by threatening their cash
reserves) and expand the BJP’s support base in the Hindi heartland by
projecting demonetisation as a pro-poor measure....."
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