PM Modi, take note: These countries failed at demonetization
It's not the first time distress has spread in the wake of a currency reform. While major operations in developed nations, such as the decimalisation of British pounds in 1971 or the introduction of the cash euro in 2002 went smoothly, others in emerging markets have not -- especially when mounted by governments that, unlike India's, weren't democratically elected. Here are some examples:
On its last legs, the country under
The reform failed to halt inflation and instead served mainly t o accelerate a slide in public confidence in the government. As political infighting combined with economic collapse,
In 2010, the regime of then-dictator
In 1987, the country's military junta invalidated as much as 80 percent of the value of money in circulation, according to reports at the time -- as in other such initiatives, it was directed at curbing the black market. One result was the first student demonstrations in years. Deepening economic unease helped trigger mass protests across the nation the following year that led to a government crackdown that killed thousands of people.
The country in 1982 got rid of its 50 cedi note to crack down on tax evasion, address corruption and mop up excess liquidity. The move eroded confidence in the banking system as people turned to foreign currency or physical assets instead. The black market for currency flourished. As rural dwellers had to walk miles to the nearest banks to exchange their money, and after the deadline passed, there were accounts of bundles of notes abandoned as worthless.
In 1984, the military government led by
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