How Demonetization Failed Miserably Internationally ?

PM's heart-wrenching moves last week to make 85% of the currency denomination of 500 and 1000 to be invalid has created a state of chaos,confusion and disorder in the country as people are wondering what to do with their 500 and 1000 notes as the exchange limit is just Rs2000 from 17th November.
It is not the first time that such disorder has happened in the wake of currency reform. The reforms like demonetization of British Pound in 1917 or introduction cash Euro went on smoothly but not in the case of others.

Soviet Union
The country under Mikhail Gorbachev in January 1991 large ruble bills from circulation in a move to get control over the black money- which is also Modi Ji's motives- and increase the currency value. The government said 50 and 100 ruble notes invalidated amount to bring back one-third of the money in circulation.

Their reform failed miserably to put an end to inflation and instead served mainly to accelerate a slide in Public confidence in the government. Political fighting along with economic collapse, Gorbachev's destroyed and led to its break up. Following in 1998 redenomination of Rubel took place.
North Korea

In North Korea in 2010 under the dictatorship of Kim Jong - he introduced a reform to knock off two zeros from the face value of Gold currency to bring about the black money. This led to a poor harvest , country with severe food shortage. Surging rice price led to disorder  and Kim had to appologize.


The dictator Mobutu  Sese Seko has introduced demonetization in 1990's and he faced disruptions. This system saw a surge in inflation and collapsed in the exchange  rate against dollar.

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