Hello economics people
Govt recently banned existing higher denomination notes but also introduced at the same time 2000 rupees note and 500 note in their place. What is the logic behind this introduction of 2000 note? Kindly give deeper analysis wrt to any task force/committee recommendations.
Some generic reason that I can think of are:
1. To meet short term liquidity crisis
2. To make up for value depreciation of rupees or purchasing power
These 2 might not be full rational reasons behind it. Something else must be there which I can not find satisfactorily. Please explain with your knowledge what is that?
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