The case of demonetisation in India
The HinduPopular narratives play a much bigger role in economic policymaking than economists and policymakers acknowledge. The demonetisation story in India is also based on popular myth, the folklore of black money and its association with physical cash. Very little of its declared objectives — of eliminating black money, corruption, moving towards a “less cash and more digital economy”, or increased tax compliance — were achieved. Although income from corruption or criminal activities is by definition black money, most black money is earned through perfectly legal activities though not declared to the tax authorities. When it became clear that the cancelled currency was being returned to the banks in larger numbers than expected, the narrative changed focus from black money and fake currency to digital/cashless payments, the latter being elevated to some higher purpose than what it actually is, a mere technological change.
History of this topic
From the India Today archives (2016) | Demonetisation: When the entire nation queued up
India Today
Supreme Court Went Wrong In Saying Demonetisation Had Reasonable Nexus With Eradicating Black Money : Professor Arun Kumar|Interview
Live Law
From the India Today archives (2016) | The pangs of demonetisation
India Today
Six years on, jury is still out on efficacy of demonetisation
Deccan Chronicle
2016: Demonetisation
The Hindu)
Demonetisation Dealt Body Blow to Systemic Financial Corruption, Black Money: BJP
News 18
Demonetisation Review: More Currency Does Not Mean More Corruption
The Quint)
RBI says 99.3% of demonetised currency is back: What went wrong with the government's black money hunt
Firstpost
From GDP growth to black money, costs outweigh benefits of demonetisation
Live Mint
Demonetisation comes to haunt govt as RBI says 99.3% notes back
Live MintDiscover Related
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