Withdrawal of ₹ 2,000 Banknotes: Paving Way to Mini Demonetisation
None of the arguments that the RBI has given to justify the demonetisation move are valid.
Category Public Finances and Macroeconomics
The Withdrawal of Rupees 2000 Notes: A New Mini-Demonetisation in India Soon
In a sudden though not unexpected move, currency notes of the denomination Rs 2,000 are being withdrawn from circulation. This is announced via a notification released by the Reserve Bank of India and not the government (as at the time of demonetisation). These notes are not being withdrawn from circulation, but actually, they will stop circulating right away given that they will have to be deposited in a bank or exchanged for lower denomination notes.
Speed Up India: On Platforms and in Government
Ten years ago, when then-prime ministerial candidate Narendra Modi promised India bullet trains, he probably did not bargain for the system's resistance to high speed. The journey from an average speed of 60 kmph to a bullet speed of over 300 kmph would take longer than expected. It required an entirely new state-of-the-art infrastructure and a new mindset. However, that did not dissuade the pragmatic Modi as PM Modi from bringing greater speed to the railways by introducing the Vande Bharat trains that run at 120 kmph.
Analysis with Incorrect Data Poses Problems
Capitalism is facing multifaceted challenges due to the problem of policy-making based on incorrect data. Governments and international agencies like the World Bank that depend on faulty official data cannot correctly analyse and help resolve the problems facing the world and its poor.
Impact of Livestock Sector on Income Growth
Despite an increased share (30%) of livestock in the agricultural GDP, most of the big-ticket budget items in agriculture, such as food subsidy and fertiliser subsidy, cater to the crop sector.
ANIMAL husbandry, the practice of breeding and nurturing domesticated animals, has been an essential part of agriculture since ancient times. It played a crucial role in the development of human societies by providing milk, meat, wool and leather. Now its role in producing and exporting dairy-based products (cheese, butter, ice cream etc.), meat and meat products, eggs and leather is increasing.
Is UPI the End of the Road for Credit Cards?
“It is now proposed to expand the scope of UPI by permitting operation of pre-sanctioned credit lines at banks through the UPI,” said the RBI Governor’s statement, towards the end, announcing the Monetary Policy Committee’s decision to pause policy rate changes. This proposal is fairly anodyne and anaemic, in comparison to, say, the Red Queen’s curt command, “Off with his head!” But make no mistake, it is no less effective a death sentence, directed, in this instance, at credit cards.
The SVB Downfall: a Macroeconomic Phenomenon
The real world has a way of confounding textbook economics. Macroeconomics, the branch that deals with the big things like growth, inflation and interest rates, seems broken when used to implement policy. In medicine, a drug is not approved for use if it has potentially serious side-effects. Or, if it's approved, it is administered with care, in the right doses. The collapse of Silicon Valley Bank (SVB) and the pressure on other US banks suggests that economists still don't quite appreciate the side-effects of their actions.