Shifting Narratives on the goals of demonetization,a clear proof,it was fundamentally flawed ...

When demonetization was imposed like the financial emergency , in 2016 the author and the architect thundered that the primary aim was to stamp out the cult of black money and root out corruption .we were also told that  it will help check the terror funding by eliminating counterfeit notes and also usher in a digital economy from cash economy .what has happened to those objectives ?Did note ban eliminate black money and tackle corruption ?

Those who were  rooted in Marxist and Keynesian traditions and those who also know how capitalism functions ,were  skeptical of the measure and within a few days of its launch started recording their contrary opinion that it will be a spectacular failure and cause a collateral damage to the economy .

It is now history that how it impacted the people – the varied segments of the economy from farmers to traders,from migrant labour to all informal economy and all those who did not have any secured employment .The confiscation of cash from the ordinary ,and leaving the black money in tact with the crooks ,- albeit in the new pink coloured notes ,was the most cruel act in the recent history .The meanest part of the drama was to invoke nationalism to cajole the affected to bear short term pain for long term gain.This effective fooling ,going on giving false hopes , to cover up one’s own inadequacy was the height of the shallowness and crookedness of the measure .

This discourse on demonetization underwent multiple narratives as the prospects of unearthing black money became a remote possibility. Authorities defended by saying that it was not meant for weeding out the black money .Once the fake notes started appearing ,they did not want to talk about tackling  the terror money funding as the important objectives .when the digital transactions had their own peculiar problems like cyber crime and many fraudulent episodes came to light ,they said the target was not cashless economy but instead less cash economy .once it was pointed out that the cash in circulation in 2017-18 was more than what it was before 2016-demonetization period,the narrative changed .The FM came with a new theory that actually the objective was to transform the non tax complaint country into the tax complaint nation and from that perspectives  the objective of note ban has been achieved ..what is indefensible ,they have defended ;what is irrational and idiotic they have treated in the name of rationality .

  Not only that the fond hope that at least three to four lakks crores worth 500 and 1000 rupee notes would not return and to that extent the liabilities of RBI will be extinguished and that will accrue as dividends to the federal government which will help solve the fiscal deficit .

Even while it was clear that the measure was a failure ,the  supports   glorified it  and critics denounced  and demonized it.  It is now current history that under the combined onslaught of  both demo and GST which virtually choked  the aggregate demand  was virtually choked and the economy pushed into a tailspin of recession affecting  people.