demonetization myths debunked

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Page 1: Demonetization Myths Debunked
Page 2: Demonetization Myths Debunked

DEMONETIZATION DEBUNKED.

WHAT THE MEDIA DID NOT TELL YOU.

HOW WILL IT IMPACT INDIAN ECONOMY?

@RAJESHSOUND

Page 3: Demonetization Myths Debunked

A BILLION INDIANS WHO WERE GETTING READY TO GO TO BED, THAT NIGHT, WERE

STARTLED, BY SHOCK AND AWE.

A NIGHT OF JUBILIATION FOR MANY, DESPAIR FOR SOME.

Page 4: Demonetization Myths Debunked

ON THE NIGHT OF NOVEMBER 9, 2016, 8PM IST, INDIAN PRIME MINISTER SHRI.

NARENDRA MODI DECLARED THAT ALL ₹500 AND ₹1000 NOTES WOULD NO MORE BE

LEGAL TENDER AT THE STROKE OF MIDNIGHT.

Page 5: Demonetization Myths Debunked

DEMONETIZATION WOULD SOLVE COUNTERFEIT, CORRUPTION AND BLACK

MONEY IN ONE SALVO.

Page 6: Demonetization Myths Debunked

TWITTERATI CALLED IT “A BOLD MOVE”, “A #SURGICALSTRIKE ON #BLACKMONEY”.

Page 7: Demonetization Myths Debunked

THIS SLIDESHARE IS NOT ABOUT THE INTENT, TEMPORARY HARDSHIPS OR POLITICAL WILL.

Page 8: Demonetization Myths Debunked

THIS SLIDESHARE DISCUSSES IMPACT TO INDIAN ECONOMY

Page 9: Demonetization Myths Debunked

SHORT TERM RELIEF ON COUNTERFIET

+ WILL WEED OUT THE COUNTERFEIT

CURRENCY IMMEDIATELY

+ DO NOT KNOW IF NON-COUNTERFIETABLE

Page 10: Demonetization Myths Debunked

A COMMA ON CORRUPTION

+ THERE MAY BE A PAUSE BECAUSE THE

OLD MONEY CANNOT BE USED.

+WITHOUT OTHER SYSTEMIC CHANGES,

CORRUPT WILL FIND NEWER WAYS

Page 11: Demonetization Myths Debunked

SMALL PART OF BLACK MONEY

MOST STATIC BLACK MONEY IS IN FORM OF

GOLD, REAL ESTATE, FOREIGN ACCOUNTS

Page 12: Demonetization Myths Debunked

WHAT ABOUT GDP, INFLATION, RECESSION.

Page 13: Demonetization Myths Debunked

LACK OF CLARITY ON MAGNITUDE, DEMOGRAPHICS AND ITS CIRCULATION ADDS TO THE UNCERTAINTY OF RETRIEVING BLACK

MONEY.

Page 14: Demonetization Myths Debunked

ACTIVE BLACK MONEY, IS THE MONEY IN CIRCULATION. IT HELPS IN ECONOMIC

ACTIVITY, PARTLY.

Page 15: Demonetization Myths Debunked

STATIC BLACK MONEY IS THE CASH LOCKED UP AS CASH IN THE LIKES TRUNKS,

MATTRESSES AND LOCKERS. THE STATIC MONEY SERVE NO SIGNIFICANT PURPOSE TO

BOOST THE ECONOMY EXCEPT FOR THE POLITICAL PARTIES AND IS USUALLY USED TO

FIGHT ELECTIONS.

Page 16: Demonetization Myths Debunked

IMPACT ON GDP

Page 17: Demonetization Myths Debunked

MORE ‘STATIC’ BLACK MONEY INTO FORMAL ECONOMY

THERE IS MORE LIQUIDITY INFRASTRUCTURE PROJECTS HIGHER

PRODUCTIVITY MORE JOBS AND BETTER EMPLOYMENT BETTER GDP GROWTH.

Page 18: Demonetization Myths Debunked

PENALTIES AND TAXES BOOST TREASURY BETTER FISCAL CONSOLIDATION

BETTER CURRENCY STABILIZATION GDP GROWTH.

Page 19: Demonetization Myths Debunked

INFLATION

Page 20: Demonetization Myths Debunked

MORE ‘STATIC’ BLACK MONEY INTO FORMAL ECONOMY MORE LIQUIDITY HIGHER

INFLATION.

Page 21: Demonetization Myths Debunked

HIGHER PENALTIES AND TAXES SMALL TRADERS PAY MORE TAXES HIGHER SELLING PRICE HIGHER INFLATION.

Page 22: Demonetization Myths Debunked

RECESSION

Page 23: Demonetization Myths Debunked

LESS ‘ACTIVE’ BLACK MONEY REDUCED FLOAT FOR SMALL TRADERS REDUCED

ECONOMIC ACTIVITY RECESSION.

Page 24: Demonetization Myths Debunked

PENALTIES AND TAXES ON SMALL TRADERS MORE LOSS SMALL TRADERS OUT OF

BUSINESS RECESSION

Page 25: Demonetization Myths Debunked

THE INTERPLAY BETWEEN THE THREE IN THE NEXT FEW MONTHS

WILL US SHAPE THE FUTURE. ONLY TIME WILL TELL.

Page 26: Demonetization Myths Debunked

DEMONETIZATION DEBUNKED.

WHAT THE MEDIA DID NOT TELL YOU.

HOW WILL IT IMPACT INDIAN ECONOMY?

@RAJESHSOUND

Page 27: Demonetization Myths Debunked