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Couple of confusions over demonetisation, remonetisation, price rise and price fall
Confusion no-1 While 'demonetization' has become a buzz word for everyone, another term 'remonetisation' has too started doing rounds on TV news channels. Mostly, the NDA government is pushing this term. In various discussions, what I could understand was that the introduction of new notes of Rs 500 and Rs 2,000 is referred to as remonetisation. But is this term being used in the right context?

As per definition, remonetisation means restoring a currency to legal status or in other words reinstating a currency as legal tender. Remonetisation is simply an antonym of demonetisation. Thus, even if the demonetised currency notes of Rs 500 and Rs 1,000 notes were reinstated as legal tender, it could have also been called remonetisation.

Introducing new notes of Rs 500 and Rs 2,000 can be referred to as monetisation. By definition, monetisation means conversion of an object into money. In this case, the new currency notes of Rs 500 and Rs 2,000 have been made legal tender, which means, converted to the status of money.

The question now is, why people especially from the government side, are using the term remonetisation?

Frankly speaking, I don't know. My guess is that perhaps the ruling party thinks that demonetisation is an evil term in present context, thus they are pushing the term remonetisation to lower the evil effects of demonetisation. But, is it due to some superstition? Well, I have no answer.

Confusion no-2

Indian media especially the electronic media has been hyper after current developments and in the process has started sensitizing a very common thing into an extraordinary issue. Let's consider price rise. In the same period in the previous year, every news channel was raising a voice against the increase in prices of dals, potatoes, onions and other vegetables. But, although the rates of dals have now reduced by around 30 to 40 rupess and normalised and similarly all vegetables have also became cheaper, the TV news channels are sensitizing the fall in prices as a bad effect of demonetisation. Isn't it hypocritical?

For example, a commodity that now costs Rs 100 had touched Rs 150 last year and everybody had started questioning the government's economic policy, ignoring the fact that agriculture had been affected for continuously two years due to erratic monsoons and unfavourable weather.

This year, since the monsoon is good and there is bumper production, the rates have come down to Rs 100 again of the above commodity. Now again the government is beaing blamed, screaming that 'see the collateral effects of demonetisation, as the rates of the commodity have fallen by Rs 50'. But I'm confused. If the price rise occurs the government is accused and if the prices come down to normal even then the government is blamed. My confusion is what's the base rate of a commodity as per TV channels? Or the base rate keeps changing depending on whether the government can be cornered for price rise pinching the consumer's pocket or fall in prices hitting the farmers?

Is there anyone who can clear my confusion?

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of merinews.com. In case you have a opposing view, please click here to share the same in the comments section.
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