11/8/2016

(3)Whycan'tgovernmentstopprintinghighdenominationcurrencynotestostopblackmoney?Quora

BlackMoney

Currencies

Government

Money

Whycan'tgovernmentstopprintinghighdenomination
currencynotestostopblackmoney?

There'smoreonQuora...
Picknewpeopleandtopicstofollowandseethe
bestanswersonQuora.

Sayifwestop500and1000notesitwillbeabigproblemtostoreandcarry.
UpdateYourInterests
Request

Follow 1

Comment Share Downvote

RelatedQuestions

Canyouanswerthisquestion?
WhyistheIndiangovernmentnotabolishingthe
currencynoteof500and1000toreduceblack
money?

Answer

Ifkillingpapercurrencyissuchanobviousmeasure
tocurbblackmoney,whydon'tgovernmentsdothat,
especiallyindevelopedeconomies?

3Answers
P.Anand

Whycan'tgovtscraphighdenominationcurrencyto
curbcorruption?

WrittenAug3

DearFriend!
Inlife,whenyouattempttosolveoneperceivedproblem,tenothernewandunexpected
problemsstandup.
Blackmoneyisnodoubtahugemenace,butinattemptingtocurbitnogovernmentcan
affordtoinconveniencecroresofhonest,lawabidingcitizens.
Therealneedforhigherdenominationcurrencyhascomeaboutbecauseofhighratesof
inflationoverabouthalfacenturyinthepostindependenceIndia.Ifthevalueofmoney
hadnotdeteriorated,therewouldnothavebeenaneedforthesenotesinthefirstplace.
AskQuestion
AskorSearchQuora
Haveyouthoughoftheinconveniencethatwillbesufferedlakhsofinnocentpeoplelike
youandIwillsufferwithouthighdenominationcurrencieslikethe500and1000rupee
denomination?Supposeyouhavetodrawacoupleoflakhrupeesforyoursisters
marriagefromthebankandifyouhaveonly100rupeedenominationcurrency,youwill
havecarry20bundlesfromthebanktoyourhome,maybeinpublictransport,attracting
theattentionofthieves,robbersonthe.Besideslossofmoneyitisaseriousthreattoyour
life.
Sowecannotlookatacomplexproblemlikeblackmoneyfromasingleperspectiveof
banninghighdenominationcurrencyonly.
Outsidethistopic,Iinviteyoutolearnvalueinvestingatmyblog
inflationandcreatinglastingwealthforyou.

.Itwillhelpinbeating

171ViewsViewUpvotes
Upvote

Ifthecentralbankofacountrystopsprintingcurrency
noteswoulditnotstopinflationonceforall?
Whydoesn'tthegovernmentstopprintingcurrencyif
itcoststhegovernmenttodoso?
BlackmoneyIndia:whydon'twestopdenomination
oflargernoteslike1000andexchangeallcurrency
noteswithnewcurrencynotes,isitfe...
3
Howhardisittochangehighdenominationcurrency
Answer
Notifications
Aley
noteinIndia?

Read

HowdoestheRBIdecidewhichdenominationnotes
toprintandinwhatamounts?Doesalowerversus
higherdenominationnotehaveanyimpacton...
Whycan'tthegovernmentprintmoneysinceevery
countryhasacurrencyprintingmachine?Can'tthey
dothistoanextenttocurbpovertyand...
Whathappensif500and1000notesare
discontinuedinIndia?
MoreRelatedQuestions

Don'tseeyourquestion?

AskQuestion

Downvote Comment

QuestionStats
IappstrackSftware
Written6mago

GovernmenthasbannedRs500/1,000noteseffectivetonight.
IndiadonthaveaGDPdeflatori.e.,wedontcreatevirtualmoneylikeUSA.Soourbase
moneyM1istheamountofcurrencyfloatinginthesystem.IfourGDPisaround2trillion
dollarsthenwewillhaveRs68*2,000,000,000,000($1=Rs68)orinotherwords,Rs
1,36,00,000crorescurrencyincirculation.Ofthis,let'sputaballparkfigureofRs
1,00,00,000croresisinRs500/1,000notes.

1Follower
390Views
LastAskedAug3
Edits

ToprinteachRs500/1000/2000note,itcostsbetweenRs57.Sotheprintingcostsalone
workouttoRs50,000croresatleast.Topumpitbackintothesystem,itwillcostdouble
thatamount.Ifwediscountit'seffectonliquidity,transactiondelays,manhourslostand
othersuchcosts,itwouldamounttofewlakhcrores.
Peoplewillthinkitcurbsblackmoney.Thesystemprovidessomanyloopholesthatbigfish
caneasilylaundertheirblackmoney.Onlythesmallfishesandcommonpeoplesuffer.

https://www.quora.com/Whycantgovernmentstopprintinghighdenominationcurrencynotestostopblackmoney

1/2

11/8/2016

(3)Whycan'tgovernmentstopprintinghighdenominationcurrencynotestostopblackmoney?Quora

Hopeaparliamentarydebatewasheldbeforetakingthisunilateraldecision.
1View
Upvote

Downvote Comment

DurgeshGaur,12+ExperienceinGlobalanddomesticeconomy
WrittenAug5

Itshouldbedoneandmaybedoneinfuture,butatpresentmostofourfinancial
transactionsarebeginperformedinhardcurrencies,sotoeasethecurrenttransactionswe
needhighpricedcurrencynotes.
Butinlateryears,graduallyhighpricedcurrencynotwillbeofffmthemarketas
simultaneouslyelectronictransectionofmoneywillbecomelarger.
84ViewsViewUpvotes
Upvote

Downvote Comment

TopStoriesfromYourFeed
AnswerwrittenNov2

AnswerwrittenSun

AnswerwrittenNov3

Arethereanyopenlyunrepentant
nazisfromWWIIstillalivetoday?

WhyareLatinculturessocorrupt?

Whataresomeatrocitiesthathave
beenlargelyforgotten?

Anonymous
WrittenNov2

Sure.Whenmygranddadstartsdrinkingon
familycelebrations,hellinsistthatitwasnt
thatbadandHitlerwasrightinprinciple
beforeheshutsupanddrinksmorewhen
therestofthefamil...
AskorSearchQuora

ReadInFeed

GustavoSued,Oneoftheonly
careersthatlyingandbeingwrong
givesyoumoney

NickKeller,Studiesworldhistory
UpdatedMon

WrittenSun

AskQuestion

Read

Itisn'ttheculturethatiscorrupt.Seriously
don'tsaythat,it'snotnice.LatinAmericans
ReadInFeed
are,andhavealwaysbeenareally

https://www.quora.com/Whycantgovernmentstopprintinghighdenominationcurrencynotestostopblackmoney

Answer

Notifications

Aley

ReadInFeed

2/2