Black Money and Demonetization: Debunking myths and apprehensions
email: khyati.khush@gmail.com The big ticket currency reforms introduced by Prime Minister Modi to curb circulation of fake currency, trap the black money and pave-way for a gen-next digital economy. Now, why when everywhere it is labeled as ‘demonetization’, it is preferred to mention currency reforms here? It is because the larger picture gets hidden under the label of demonetization, whereas currency reforms widely define the intention and direction of current monetary initiatives. Black Money or Parallel Economy? At first, it is important to understand the meaning of ‘parallel economy’, which in commonly is referred to as black money. Though ‘Parallel economy’ is the wider concept, of which ‘black money’ is a component. Parallel economy has political, commercial, legal, industrial, social and ethnic aspects. There are legitimate and illegitimate sectors under parallel economy, the objectives of both certainly confront one-another (Sarkar, 2010). India being a mixed