ABSTRACT
This chapter shows both the specific design of the demonetisation and its subsequent implementation were, if anything, even more problematic. It considers several elements of the design and implementation of this measure: the emphasis on suddenness and secrecy that did not allow the economy or the people to adjust gradually without massive destabilization. The chapter also considers the inadequate preparation of the banking infrastructure that led to huge shortage of replacement notes. It further considers the constant changing of rules and regulations with respect to exemptions, withdrawals and exchange that created confusion and turmoil among the citizenry but still enabled the dishonest to beat the system very successfully. The chapter explains the arbitrary and unfair treatment of certain sectors and institutions that created injustice, increased inequalities and even contributed to further financial exclusion. Government spokespersons argued that secrecy and speed were of the essence for demonetisation to achieve its goals.
