There is no evidence to show that demonetisation has helped the economy. But five years after the demonetisation saga there is plenty to show that it has damaged whose negative impact is still being felt.
It led to the collapse of much of the informal sector which accounted for a large part of the economy.
The PM had said that demonetisation was meant to flush out black money and wanted people to bear the pain for 50 days to help him deliver the India of our dreams. But it turned out to be a nightmare. Most black money, that demonetisation provided hoarders an opportunity to turn it into white money. There was no prior consultation with the RBI, which was asked to endorse the government’s decision.
It was a deeply flawed idea, executed without any study of its consequences.
