Macro economics has always confused me. Once in my 9th Standard, I asked the only question (from me) to my strict economics teacher (who appeared quite intelligent to me) : “Why don’t we just keep printing more and more money to pay off debts to foreign countries and stop collecting taxes ?” The whole class was stunned! I knew I had hit the nail in the coffin, and the seemingly very intelligent economics teacher didn’t have the answer. She replied “Stop thinking too much on macro-economic subjects”. That was escapism for sure, but I took her advice
I am still not comfortable on macro economic subjects like dollar value appreciation, stock market being bullish, the Budget presented by the FM with so much fan fare etc. But when it comes to simple economic things that affect the common man (Read: Macro economic ignorant man) like me, I just cannot ignore it!
I am talking about the non-availability of 50 Rupee notes in circulation in the market. I mean I need to almost think twice before giving the 50 Rupee notes to any shop, thinking I might run out of them when I need change! Some times I have even been refused certain articles, for the non-availability of 50 rupee notes, both with the shop keeper and myself. So, I wanted to know who was responsible for this. Fortunately, now we have Google.
It seems the Reserve Bank of India is responsible for deciding how many notes to print and I read the following in their official website : (You can click on that link if you want to know what are the unique features of original currency notes and how to distinguish them from the duplicate ones) “The Reserve Bank estimates the quantity of bank notes that are likely to be needed denomination wise and accordingly places indent….”
I don’t know what methods they use to “estimate the quantity of bank note denominations” that are needed in the market, but they are quite off the target when it comes to estimating the requirement of the number of 50 Rupee notes, I think.
In the same website, I found this: “However, Rs. 5 was re-introduced in 2001 to supplement the gap between the demand and supply of coins in this denomination” – Bang on. That was good work, and I appreciate the minting of 5 Rupee coins instead of 5 Rupee notes which gets easily torn. When they were able to identify that correctly, why not print more 50 Rupee notes too? We want more 50 Rupee Notes!
So, I went to the “Contact Us” portion of their website and filled up the coloums, and pressed the Submit button. I thought I may not get a response but well it doesn’t even take my request! Try for yourself, and let me know if it is accepting the filled up online form.
And if you are still wondering about why a Government cannot simply print more and more currency notes to pay external debts and stop collecting taxes, this article provides a good answer to it!!
To read similar articles, you could visit the Concepts and Ideas section of this Blog.