Rahul Mehta Gandhinagar LsCandidate

Such note demotization have only one time benefit and huge costs --- people will now hoard gold and so forex drain on India will increase and value of rupee will fall due to gold import and forex drain !!
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For next 20 years, no one will trust cash. All black money hoarders will immediately convert even moderate amount of cash into gold. So in future demand of gold will increase --- legal import or smuggling.
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So gold import will increase. And so forex drain will increase. So value of rupee will fall.
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So it may turn out that long term damages of demonetization will be more than short term benefits of temporary reduction in black money.