https://padlet.com/mylinhtong8499/sqraqt7wmsks en-us 2017-11-08 12:54:49 UTC 2017-12-05 03:10:19 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Lightdecrease.png mylinhtong8499 https://padlet.com/mylinhtong8499/sqraqt7wmsks/wish/208274061 Summary:
High-value bank notes were no longer accepted in payment of a debt (legal tender)

Economic Cost
- Rural & informal economy where most transactions are cash-based --> Suffered
1. Wholesales markets
- Immediate aftermath: Sharp decline in wholesale price index (WPI - measures inflation/basket of wholsale goods) of fruits & vegetables
2. Domestic sales of transportation
- Sales of 2-wheelers plunge sharply
- Cars sales decline but less severe
3. Slowdown in economy
- Very less new projects launching
4. On Reserve Bank of India (central bank)
- Dividend from Reserve Bank of India to government is lower
- Domestic earnings declined
- Printing costs went up

Uncertain benefits (promises that are not fulfilling)
1. Rapid expansion in tax base
- Tax base contributes only 0.1% to India's GDP
2. Detect and eliminate counterfeit (fake) notes
- Growth in detected fake nots have not been significantly large 
3. Boost to non cash payments 
- Which is uncertain because of increasing Cash-GDP ratio (ratio of debt-GDP by the gov, to see if the country is generating enuf products (GDP) to cover debt (cash))]]> 2017-11-17 19:33:49 UTC https://padlet.com/mylinhtong8499/sqraqt7wmsks/wish/208274061 xinnn_nxy https://padlet.com/mylinhtong8499/sqraqt7wmsks/wish/208389639 Summary:
Lack of data, demonetisation, crippling of GST are the reasons for unemployment.

Small and medium enterprise (SMEs) are impacted the most in the unorganised sector, by demonetisation.
Crippling impact of GST caused employment problems in intensive sectors.

40% of the workforce in India is employed in non-agricultural jobs and such jobs are changed frequently hence the high volatility in unemployment rates. 

Mahesh Vyas estimated 404.7 million people were employed in January to April in 2017. With the previous estimation by CMIE according to National Sample Survey Organisation's Employment and Unemployment survey in India and Census 2011 data, 303.5 million people were employed. Hence, the increase was only 101.2 million.
This leads to the next point where there are possibilities that the high unemployment rate in India may not be due to the demonetisation for the last 12 months.
- NITI Aayog said the data are lacking a lot and that they have to increase the sample sizes from several government agencies so as to have better data collection.
Hence, unemployment has always been a problem in India but with the recent demonetisation, it worsens the issue and accentuate the job crisis. 
- the unemployment rate continues to increase even after one year of demonetisation
- October has the highest unemployment rate in the 11 months. 
- from 5% on the week before 8 October to 5.8%
- predict to see recovery only after a year

Employment growth has affected the GDP growth too. Madan Sabnavis, Chief Economist at Care Ratings said that corporate sector's employment growth does not correspond to GDP growth. Overall employment bulks in banking, IT, textile and healthcare sectors which if they were to exclude them the employment growth in 2016-2017 is negative.

The implementation of GST from July this year adds on to the job crisis in many more sectors too. No matter how it seems that there will still be job losses in 2017 even if the economy is slowly improving.
- An increase in the employed workforce from 401 million to 406.5 million in April 2016 to December 2016, but dropped back to 405 million between January to April in 2017.
 

]]> 2017-11-18 17:09:08 UTC https://padlet.com/mylinhtong8499/sqraqt7wmsks/wish/208389639 mylinhtong8499 https://padlet.com/mylinhtong8499/sqraqt7wmsks/wish/208968801 Higher inflation driven by rising vegetable prices which rose 7.5% due to tight supplies. 
Government allowed state-owned agencies to import onions to boost domestic supply. Tomato price firmed up due to supply disruption from one of the leading producers.
The elevated prices expected to normalize and recover from major disinflation during June.

Reserve Bank of India (Central Bank) decision in cutting interest rate (which would increase consumption) or not
- Even though inflation rate recovers, not enough for it to decide to cut rates 
- Recent rise in oil prices 
- Economy gathering momentum
--> Better to not add further monetary ease and prepare to raise interest rates if drivers of inflation strengthened further

Oil Price Concerns
- Recovery in global oil prices
(Example and further elaboration in article)
- Petrol and diesel combined weight of 2.3 % in CPI
- Indirect impact on production & transportation cost
--> Upward pressure on inflation rate]]> 2017-11-21 06:20:39 UTC https://padlet.com/mylinhtong8499/sqraqt7wmsks/wish/208968801