Monday, 21 November 2016

Do Not Pay Attention To All The Noise About Demonitisation

 Ever since PM Modi announced #Demonitisation on Nov. 8, 2016 the media is abuzz about potential impact - both short term & long-term; Good & bad.

The extent of negativity an individual is associating with #Demonitisation# is directly proportional to one or both the following factors combined:

  1. The inability to accept Modi as the Prime Minister of India, and
  2. The mental agony & financial loss borne to 'adjust' the banned Rs. 1,000 & Rs. 500 cash notes lying with the individual
This negative reaction to #Demonitisation is then getting rationalised by highlighting the hardship to the common man or fretting about the long-term negative impact on the economy, and so on.

Here is how to deal with all the noise surrounding #Demonitisation...

  1. Realize that this is an unprecedented event: Never in the history of mankind, an economy growing at 7% has sucked out 86% of cash available. With due respect to all the qualified & unqualified economists out there, one cannot fathom fully all the positive & negative long-term impact of this event.
  2. Be aware that there are too many moving parts: One never knows what further actions the Government will announce. Therefore, one's view on the positive/negative impacts can change suddenly.
  3. Learn from experience - Like always, actual impact will be in shades of grey: Long-term impact will have both positives & negatives for the economy. Only time can tell how far will one outweigh the other.
  4. Remain focused on YOUR own goals & objectives: Cut out the noise, focus on your own goals.

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