Saturday, 10 December 2016

Is Demonetisation good in the long-run?

-Only rule-based capitalism could transform Indian economy and take it into the next level.

-But rule-based capitalism will not be practical in a system where cronyism thrives.

-Demonetisation is a strong message against cronyism and those who are unwilling to play by the rules.

-Although this won't be the panacea for curing the economy from the parallel version, it will nudge a certain number in the right direction— to pay taxes, to transact without cash.

-More importantly, demonetisation will rebuild the faith of a disenchanted people in staying invested in a system that is rotten but that can still become fairer for all.

-The fruits of demonetisation,thus,can be reaped only in medium/long term.

Source

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