Cashless Economy Research Paper

This ‘cashlessness’, if intended to promote a long-term cashless economy is actually not demonetisation; rather it’s monetisation of the economy. The quantum of money multiplication from cash through the banking system should be assumed by the productive forces of the economy. However, the critical aspect is that the fiscal policies should work in tandem with the monetisation drive.

As far as the prevailing sense permits, the surplus by authoritarian coercion is feudal wealth and the surplus by productivity is the formation of capital. The element of coercion subsists even in the ‘much debated’ historical transition process to capitalistic development owing to the simultaneous persistence of rent seeking wealth and chaste productivity-linked capital. The anatomical features of the human societies have silhouetted this inevitable juncture in the contemporary world. And, the growth of mercantile trade has been a key enabler in this transition. In the erstwhile colonies like India, this transition is certainly bewildered by a longing colonial economy. Again, this transition has direct bang on the collateral political processes to legitimise the socio-economic relations.

Concurrently, the monetary economics has

The monetization limits economic activities only through the use of money and bars unorganised activities in the economy. In that sense, the regulation through monetary policy has both technological prudence and humanistic externalities. An, a highly monetised economy can also make the fiscal policies ineffective to generate fiscal money, because the humanistic externalities can only be internalised by fiscal policies that aim at the total level and composition of spending in an economy. Therefore, the simultaneous presence, as I have mentioned earlier, will create a degree of conflict between the empowerment through social and monetary mechanism in the transitional