Understanding Demonetization in India

CHAPTER 6

Demonetization in Other Countries

As a monetary measure, demonetization has been implemented in other countries, too. One can find a series of moves toward demonetization the world over in the past. This chapter seeks to provide an understanding of why various countries embraced demonetization. Many countries implemented demonetization and benefited from the move, whereas some others failed at it. Almost all countries that had done demonetization had some common objectives—to curb inflation, corruption, and black money—and their government decided to demonetize their high-value denomination notes to get rid of these problems. In fact, India’s Economic Survey 2015 to 2016 refers to over 20 countries resorting to demonetization with different ...