My 2 cents because, who even wants to touch the Indian currency right now?
Technically speaking, PM Modi declaring the 500 and 1000 rupee notes defunct and invalid overnight doesn’t make them so neither does it reduce or nullify their value; the December 30 deadline till which they are accepted in banks will in actuality make them invalid.
But the naive don’t understand that any doubt, distrust in the mind of the money holder about his own money is very very bad.
A result of this is panic, misery and rumors, and these things I can tell because they are easily visible and out in the open. I wonder what those with a background in business and/or economics can see in this deliberate mess.
Then there is the case of the 10 rupee coin. Even though they are valid, legal, few are willing to touch them, all because of rumors. And the strange thing is, when you ask people who aren’t accepting them, they always say, “I know it is legal, but I still won’t accept it.”
If an irrational fear and distrust has taken hold in the mind, what is valuable will become valueless to that mind.
The only thing Modi’s late night declaration did was create misery and panic for rich, poor, middle class, innocent and the so called guilty alike.