Home Les bulletins GEAB GEAB 110 Demon-etisation: India opens with a fanfare the ball of the fiscal QEs

GEAB 110

The monthly bulletin of LEAP (European Laboratory of Political Anticipation) - 15 Dec 2016

Demon-etisation: India opens with a fanfare the ball of the fiscal QEs

Since November 8, 2016, India has created a monetary revolution of a magnitude never seen, both by the size of the population concerned and the depth of the transformation induced. By demonetising the biggest notes of 500 and 1000 Rs (rupees), the Indian government is trying to reintegrate into the official economy the state’s gigantic parallel (or black or more simply the archaic) economy. In a nation where 90% of the transactions are made in cash, a huge part of the financial activity escapes the knowledge of the central government, and therefore statistics, taxes and infrastructure financing.

Blue: volume; red: value. Source: Bloomberg.

Warning signs

There is nothing new in the fact that the central government tries to force its population to declare their wealth. For example, between 1951 and 1997, no less than ten amnesty projects had been launched, encouraging citizens to declare their unofficial income in exchange for a simple payment of some increased tax[1]

Comments

To leave a comment sign up now
In summary

As we have already discussed and explained before, the crisis is now taking a more geopolitical form. Does this mean that the economic-financial crisis is over? No one will accuse [...]

Africa! The second largest continent in the world after Asia, both in size and population, and also one of the poorest is shaken by internal conflicts and wars. But above [...]

Each year in December, we evaluate our trend anticipations made in January. This month, we come across a final score of 25.5 out of 34, meaning a 75% success rate; [...]

Infrastructure versus sovereign bonds We have repeatedly emphasised this before: Donald Trump's campaign promises and the probable launch of “fiscal QEs” in Europe and in the US, offer a bright [...]

Related articles
Geta Moldovan
15 Jun 2019

‘Europe insists on financing the present where the Americans and Chinese are financing the future’

#5G #economy #europe #newtech #QWANT

Interview with Eric Leandri, CEO of Qwant CEO and co-founder of the French search engine Qwant, Éric Leandri shares with GEAB readers his conviction that the US-China trade war offers [...]

Geta Moldovan
15 Jun 2019

2010-2030: The disappearance of the European banking system as we knew it

#bank #cryptos #europe #finance #international monetary system

Reports are currently proliferating concerning the health of the European banking sector ten years after its great crisis. However, on the one hand, the European banks only managed to get [...]

Geta Moldovan
15 May 2019

Faces of the future – Manfred Weber: Bringing Parliament and the Commission into line

#europe #politics

The new face of tomorrow's Europe matches the faces of tomorrow's Europeans. Among the latter is one we wish to present to you: Manfred Weber, the very petulant 46-year-old German [...]