On November 8 last year, India embarked upon a journey that was both gargantuan in magnitude and unprecedented in scale. Demonetisation sent shockwaves through the country, giving rise to harsh criticism as well as unwavering support, alike. Critics of the move said that India had landed itself in a soup and this would kill the economy; supporters countered that the only ones opposing the move are those who favour black money hoarders.
India is not the only nation to have undertaken this exercise. However, India is the only large economy to have demonetised its high currency notes. Nobody, thus, knows just what the final result of the move will be.
The main motive behind demonetisation was to root out corruption, black-marketeering and terrorist funding: but other nations which went in for demonetisation with similar aims did not end up achieving any of those objectives. If anything, they derailed economic growth and brought down governments.
Here’s a quick look at such nations whose demonetisation move came a cropper and precipitated a political and economic crisis: