BENGALURU: ‘Demonetization post 50 days’ a talk on the effect and impact of demonetization, a move by the central government was held on January 8 at Ashirvad, Center for Continuing Education & Laity Formation, St Marks Road.
Dr. Narendra Pani from the National institute of advanced studies in his address said, “Demonetization is an issue which we have been facing and which has both short and long term effects on our economy. The economic text will tell demonetization occurs due to currency failure. When the economy collapses the value of currency falls leading to inflation. India is not in such a situation and we are the fastest growing economy so there is no question of any currency failure.”
“The reasons cited for demonetization by the government were to fight against terrorism, corruption free economy and to end the circulation of black money. The terrorism is not going to stop once we replace the old currency with the new. The real reason for terrorism is not just the currency that is supplied rather there is politics behind it at international level. Introducing new currency will not change the situation as we have witnessed how the terrorists had Rs 2000 notes with them even when common people had to struggle to get it.”
Speaking on the thriving black money menace Mr. Pani said that in reality it cannot be completely checked as its very much part of the society. People today choose not to pay tax and use the unaccounted money to invest on gold, land and other valuables. Thus black money which has no any color is turned into white by many very easily today.
Dwelling on the acute impact of such a drastic step Mr Pani added that the move has affected the whole economy. “The immediate impact was on the construction workers and agriculture laborers. All those who were paid in cash daily could no longer get their wages in hard cash. Those sectors which functioned paying daily wages no longer hired workers because they did not have money to pay. A large number of the daily wage workers have returned to their villages because of slump sector like construction.”
Mr. Kiran Jeevan, Student coordinator of St. Joseph’s College moderated the session while Mrs. Subhashini Muthukrishnan introduced the guest speaker for the event.