Demonetization, a failure

View previous topic View next topic Go down

Demonetization, a failure

Post by confuzzled dude on Sat Jul 01, 2017 10:43 pm

https://www.nytimes.com/2017/06/29/opinion/india-and-the-visible-hand-of-the-market.html

http://www.livemint.com/Money/g6iNGKdOfxxXCPKxgsFsSP/Electronic-money-transactions-are-back-to-predemonetization.html

confuzzled dude

Posts : 9717
Join date : 2011-05-08

View user profile

Back to top Go down

Re: Demonetization, a failure

Post by confuzzled dude on Wed Jul 05, 2017 6:18 pm

MUMBAI (NewsRise) -- The launch of new residential projects in India slumped the most in seven years in the first half of 2017, as a high-value currency ban and a slew of regulatory changes for the real estate sector damped demand, according to a Knight Frank survey.

The industry saw 41% fewer new residential project launches in the first half as sales fell 11% on-year to the lowest five years, the real estate consultant said in a report on Wednesday, based on a survey across eight Indian cities.

In November, Prime Minister Narendra Modi's government recalled high-value currency bills of 500 rupees and 1,000 rupees in a bid to flush out unaccounted wealth. The move resulted in a cash shortage in Asia's third-largest economy, crimping consumer spending. The real estate sector was particularly hit as a bulk of the financial transactions is via cash.

After the so-called demonetization, real estate companies such as DLF and Prestige reported a slump in sales.
http://asia.nikkei.com/Politics-Economy/Economy/India-cash-crunch-rules-trigger-worst-slump-in-7-years-for-new-residential-projects?page=1

confuzzled dude

Posts : 9717
Join date : 2011-05-08

View user profile

Back to top Go down

Re: Demonetization, a failure

Post by smArtha on Thu Jul 06, 2017 10:35 am

Yes, it was a bold and workable idea but sub standard planning and execution by Govt and Banks made it a failure. Other than getting the money once into banks and thus leaving some hints/notes for the taxman it accomplished nothing more. Too expensive for what it finally accomplished. Could have done lot more if only it was planned and executed well. Opposition both barked too early and surrendered meekly to the Govt narratives.

smArtha

Posts : 1143
Join date : 2013-07-29

View user profile

Back to top Go down

Re: Demonetization, a failure

Post by confuzzled dude on Sat Jul 08, 2017 8:20 am

smArtha wrote:Yes, it was a bold and workable idea but sub standard planning and execution by Govt and Banks made it a failure. Other than getting the money once into banks and thus leaving some hints/notes for the taxman it accomplished nothing more. Too expensive for what it finally accomplished. Could have done lot more if only it was planned and executed well. Opposition both barked too early and surrendered meekly to the Govt narratives.
Just not the execution, the concept itself is half-baked.
India’s economy is struggling to recover its strong growth record, beset by record low inflation, a widening output gap, and short term uncertainty from the introduction of a uniform sales tax.

That will build pressure on the Reserve Bank of India to jettison its neutral monetary policy bias adopted just five months ago, setting the scene for lowering interest rates perhaps as early as next month, besides reminding yield-chasing investors that putting money in India is not without risks.

Any reduction in interest rates will be in contrast to what major central banks are trying to signal -- a rise in borrowing costs-- and could trip the Indian rupee which hit a 20-month high in April. This would be bad news for a country that needs to attract billions of dollars in foreign investments to make up a shortfall in domestic capital.
https://www.bloomberg.com/news/articles/2017-07-03/slowing-inflation-puts-dampener-on-india-s-robust-growth-record

confuzzled dude

Posts : 9717
Join date : 2011-05-08

View user profile

Back to top Go down

Re: Demonetization, a failure

Post by Sponsored content


Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum