The Demon in Demonetisation

The figures are out! The Reserve Bank of India has released the data pertaining to the most drastic ‘shock disruption’ to the economy. While the jury is out on the success of demonetisation, the Finance Minister shared, today, that the GDP for the first quarter of 2017-18 has fallen to 5.7%. 

Prima facie, though, the whole exercise seems to have fallen short of the government’s expectations and the set goal posts, which kept shifting even as the effects rolled out to becoming visible. But was it a heavy price the citizens paid for the “monumental mismanagement” (as it was referred to by the former PM and noted economist, Dr. Manmohan Singh) on the part of the government? 

The drama with which it was rolled out exploited the feeling of schadenfreude among the people from economically weaker sections of our society. Be that as it may, it was also a reflection of a bankruptcy in sound economic advice juxtaposed with a sense of misplaced bravado on the part of the government.

As the demon in demonetisation raises its head, slowly but surely, we can only watch to what extent the economy falls victim!