Demonetisation was for nothing says,RBI and my forthcoming volume child's guide will educate more about the misplaced concreteness and disguised politics of that magic wand.

RBI has let the cat out of the bag.The August 29 report says that demonetization was for nothing.None of the stated objectives have been realized ..Indeed the costs of demonetization in term of foregone growth, loss of life and loss of jobs, closure of small firms, the distress to farmers migrant labour and so on outweigh the so caled notional benefits promised on November 8 2016 which will go as the blackest day in History to any sensible student of economics.
 At a time when the author of this write up compiling the old notes on this subject which has had a deleterious effect on the entire economy, the news from RBI is telling the obvious..the unprecedented currency reform aimed at flushing out terror /counterfeit money,and unearthing black money held in currency and ushering in less cash economy and so on has been a huge failure but leaving behind many scars and wounds in the economy ..
Pending the publication of the child's guide  to Mr Modi's Demonetization in a few months time it would be in order to place some crude truths about the fall out of this much hyped measure
1)The banned 500 and 1000 rupee notes amounted to Rs15.42 lakh crores.This constituted 86 % of total money supply ..Every single rupee of this amount returned to RBI..wait the missing amount was only a meager 13000 crores.
2)There was a great expectation that at least 3 lakh crores wund not visit RBI and therefore to that extent the liability of the central bank would be reduced and huge amount would be passed on to the federal government as dividend...
 3)But the interesting paradox and a greater irony is that  in 2016-17, the fiscal  year ended june ,the dividend actually paid out was less than half of What RBI  paid out  in the previous year .In absolute term that was Rs 35221 crores less..
4)To replace the old notes the RBI had to incur an expenditure of nearly  nearly 13000 crores .Before demonetization it  had spent some 4000 crores..A huge amount spent with all the real costs to the economy, people firms and so on for what...to get 13000 cores dividend the missing money mentioned earlier.
5)what happened to the objective of flushing out the counterfeit currency notes?Indeed the fake notes have gone up sharply and during the demonetization period 322000  such instances have come to light..
Let me stop here as the battery has to be charged...The economy also needs to be  administered with care and concern and egoistic unilateral self aggrandizement of power will be an economic suicide and already the rupee has given the red signal .It seems the saffron colour is hardly bothered as it is confident that people memory is short and there is no united opposition   

Ruminating over the magic figure of Rupees 70 plus...Paper under publication

Abstract of the paper entitled:The recent rupee dollar slide August 2018.

Right from September 1949 devaluation of rupee(which was a follow up to British devaluation of pound sterling),through June ,6,1966 and july 1991 two stage devaluation of rupee(both necessitated by major economic crisis, the rupee has undergone a secular depreciation in line with economic fundamentals, with occasional  bout of currency appreciation(under the impact of capital flows) which RBI used to  resist for the fear of  losing competitiveness of export sector. For more than three years the rupee has been shuttling between66 and 69 per USD and in mid august 2018 it crashed to historic low of 70 plus close on the heels of massive depreciation of Turkish lira. However  for the fall and fall of rupee besides  hardening of the USD and firming up of oil price, widening of current account deficit, difficult to finance  (as outflow is more than the inflow) is mostly responsible. It is felt by experts  the range 70-72 is the right level .The current  rupee problem is a classic combination 50: 50 interplay between domestic and external  factors –a kind of cocktail .It is time the government realized ,the  dependence on foreign capital for financing CAD , perpetually, is fraught with dangerous consequence especially when the dollar is strong and panic pervades  the world financial markets..

My dear do you know how much I love you and adore you and I will grieve for you and still move on as I have a commitment to read and see the young children grow

Last year  on this day 23 August 2017 you left all of us  on the serene evening when the sun was setting the whole day more precisely the previous 24 hours you did not eat anythig not even a drop of water . nor did you lie down even for a while..you simply sat without any support or sleep..when I was sitting by your side  till mid night and then started dozing off and slept on the cot near you hardly I knew that was the last  night with you  never to return in this birth..At 3 am when I got up you signalled by sign that I shoud go to hall and sleep and the youngest was with you ..

the next day.-your last day  the marginal day by sheer quirk of fate I forgot your pain and i do not cogently remember..good thing was the second one was sensible to take leave  and all the three daughters and three grand children were there to get the vibration from your saintly solitude ,all the time folding your hand to go away...you were particular that the grand children must be at a distance.

In the whole marital life of 45 years you never did question my flirtation with my girl friend economics and my unintended indifference or distance  or the total irresponsibility on the family front or the children's educational front ..everything  seems to be  like a dream...It also happened on your last day..I was in the hall editing the paper on economic security, to be sent for publication...

Just few valuable minutes before your departure The younger one shouted appa or daddy, I abandoned the lap top rushed in only to.. find you gasping for breath.  leaning on the youngest.In a matter of minutes you were gone ...
oh my dear what did you feel the whole day? did you know the end was nearing ? you saw to it  that the grand children should not be around at that time ..You did not also want  me to bottle up memories on the last day of your existence, giving space to children .A professor who lectured day in and day out on the concept of margin and the value of your marginal life by the very same subject with which he was romancing on that day,,.
The Annamaliyar whom you were looking at with saintly and stoic face is now on my table ..I had a full cry many times ,typing every few words...thank you my Rani Kala rani and my kalavathy who became kala Natesan  that you wrote one day with smile in the final months of your life and I respected your inner  suppressed feelings for your dad...
Thank you for all the things you have done for me and your children and grand children,by leading a frugal life with all cultured norms and hospitality shown to many including my students many of them , most of them are my friends and more like a son who will at least think about me for a while when I am gone and it is a million dollar question whether we can meet..we all miss you remember you  some time cry  and console   we did not want to give advertisement in the paper ... that amount we are earmarking for feeding the poor at Jipmer complex and Arun has been informed about this.....
you have shown me how to live and how to die .
The paper I wrote last year may come now  That will always remind me that it was  nurtured when you were making a departure, giving me a feeling of guilt ..Mind is not wandering behind walking beauty or the rising sun .
I am able to hear your voice..Let my husband work  he has not got his due yet  he will be happy only when reads and throw away all the debris accumulated since 70...The degrading desires have vanished   walking is becoming a habit..visiting temple when I am taken   craving for food has gone..Fish is the only temptation which I want to hold on because of karmic good desire..I tell many a time now Kala do you know How much I  loved you...whenever i go for walk alone....
I will change for the better I am bold and confident  Arjun says  do not cry and do not worry I am here thatha to take care   I thank the almighty to complete this in the morning hours