Transient economy

ESSENCE ISBN NO.2319-5487
A Bi-Annual Referred Journal of Volume 6, Issue 1, 2017
Regent Education & Research Foundation Barrackpore, Kolkata
23
TRANSIENT ECONOMY
Dr. Ramesh Kumar Chaturvedi, Assistant Professor, Department of Rural
Management,
Babasaheb Bhimrao Ambedkar University, Lucknow.
Ghanshyam Dos, Research Scholar, Department of Rural Management,
Babasaheb Bhimrao Ambedkar University, Lucknow.
Email:- gd.kit07@gmail.com
Contact no: - 09839752618
Abstract
This paper emphasises on the problems of the countries that have taken tough decisions like
demonetisation. Due to this decision the countrymen suffered many problems. Almost all of
the countrymen made big queues in front of the banks, holding their important works and also
the economy of the country ran in very slow pace. During this period people cooperated with
the government’s decision. But after a certain period when the flow of the currency notes
being normalized the people again goes back to their previous mode of transaction that is
manual transfer of money instead of using digital techniques of transaction. Now the
condition of the economy goes back on the same track as it was before demonetisation. In
this way, the decision of demonetization proved to be null and void, after some year country
revises the action of demonetization.
The aim of the paper is proposed on how to make a successful demonetisation? This paper
also proposes some tools on how to keep the economy away from the demonetization. This
paper is based on the qualitative data and exploratory design. This paper includes the
introduction of the transient economy and its elements i.e. TEN (Transient Economy Bank
Note) under this proposal there are some changes into the bank currency notes which helps
the proper flow of money and also helps to curb the problems like money laundering ,Human
trafficking and other cash-related crimes. TEW (Transient Economy Wealth) under this
proposal all the property and the transactions are under government’s observation which will
help the government in taking decisions like how much should the tax be levied? As a result
income of the government will increase. TEM (Transient Economy Precious Material) under
this proposal it is being told that how government can control and scan the prime materials
under its eye, also helps in the increase the income. TEEA (Transient Economy Expense
Account) under this proposal it is being told that how individual as well as government

24
control and the expenses and other crimes. TEA (Transient Economy social security
Account) under this proposal it is being told that how people of a country may help in the
social security of the nation. Demonetisation with TEN How to fight with terrorism –under
this given the Global Terrorism Cycle related some strategies and lastly includes the
conclusion and recommendations.
Key points: - Transient economy, demonetization, TEN, TEW, TEM,TEEA .TEA,
Demonetization with TEN
Introduction
When the government of a country demonetizes its currency notes and reintroduces new
currency notes or digital currency, during this span of time the economy transforms from one
phase to another, this time is the transforming period for an economy. During this period
government and also the public of the country faces problems in their social, economic,
political, and personal life. Instead of facing much of problems public still stands with the
government’s decision, but due to improper implementation the process of demonetization,
there will be a huge loss of the man, material, and machinery. This transient economy
concept allots the time to prepare the government and its machinery and also public of the
country by the introducing new type of currency notes and also medium of exchange of
goods and services. By replacing the currency notes the problems like improper flow of
money, corruption, money laundering and human trafficking cannot be curbed. In a well-
developed banking system in the country, countrymen do not avail the banking facility
because the public have faith in having currency notes with them and also feel proud in
having more cash in the pocket, not in the bank account. This habit of the public can’t be
changed. During the demonetization period people may go through the directions of
government but when the flow of cash normalizes the public of the country moves back on
the cash, in this way the aim of demonetization proved to be failed. Under transient economy
concept there are some tools which help in the complete the process of demonetization with
effective manner and also proposed some methods with the help of which there will be no
need to demonetise the currency.
Methodology
This paper is based on the qualitative data and exploratory design. The ideas of the above
paper come by the recent demonetization in India and by studying the conditions of the
countries after the demonetization and their success stories and the present condition of the
countries.
What is transient Economy?
When the government of any country decides to change in the mode of exchange from one
mode to other by demonetizing the currency may be cash to cash or cash to semi cashless this
stage of the economy called the transient stage of the economy.

25
But this stage of the economy does not last very long but the flow of money in the economy
full flourish and the price of the commodity in the market reduce. People again start storing
the new currency notes after demonetization in this way the economy returns to the old path.
To keep the economy at this stage, and to keep flow of money and wealth in the economy by
the introduction of some features given below –
Transient Economy and its element
Transient Economy and its element
1. TEN (Transient Economy bank Note)
2. TEW (Transient Economy Wealth )
3. TEM(Transient Economy precious Material )
4. TEEA (Transient Economy Expense Account )
5. TEA (Transient Economy social security Account )

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The transient economy has five elements which are explained below
1. TEN (Transient Economy bank Note)
Definition of TEN
When the economy goes through the one stage to another this situation of the economy called
the Transient economy. Under this situation, No government can suddenly change the habit
of the countrymen to go from cash to digital payment, it must require time and also the
infrastructure. The transient situation in the economy when the government changes or
reduces the flow of cash in the economy by taking tough decisions of demonetization but
after the demonetization the situation becomes same as before. During the demonetization
period, the public of the country go with the government’s decision for the mode of payment.
In the tough times public follows the government, like using the digital mode of
payment.When the flow of money becomes normal public goes to the previous track. With
this conduct the aim of the demonetization becomes null and void. In fact, no government
moves directly from cash to digital currency if the government do so, this must be very hard
for the public because they are friendly with cash, not well educated in the digital mode of
payment by taking in consideration government forced to introduce new currency notes.
Specification of the currency notes which float most of countries.
 It is only paper note which is authorised to be exchanged as a medium
 There is a currency serial number which is hardly taken into consideration by the
holder
 It is fixed in the shape and size and can also be copied easily
 It is very compatible so the people can hold it in hands or home, not in bank account
 No restriction to carry huge amount of cash in the country or abroad with or without
given source of income
 Any currency note of any country is easily available all over the world with less effort
 In this way the corruption, terror financing is in full flourish, no country said that they
are free from this.
Taking these problems into the consideration the concept of TEN proposed, the TEN will
help the government to maintain the flow of money in the economy and also given proper
time to improve the infrastructure for the digital economy.
TEN is the bank notes which work efficiently during transient period to motivate the
population from the cash to cash less economy by the efficient manner.
TEN is the bank note-like water flows in the river which gives chance to grow prosperity
around the bank, if it retains it becomes flood and destruction to own and owner.
Specification of TEN
The specification of the TEN is based on the studying the problems related to the present
currency types floated in the world’s most of the economies.

27
1.1 Long life
1.2 Short period of flow in economy in physical form
1.3 Low denomination
1.4 Tangible in size
1.5 Low -security features
1.6 Semi-digital
1.7 Restriction region of float
1.8 Totally country made
1.9 Low printing, handling and destroy cost
1.10 Health friendly
Let us go through all the points in detail
1.1 Long life
It’s proposed that the TEN is made by the polymer like material, which has longer life and
low weight, in this way it makes bank notes most clean and user friendly for the banks and
also for the public of the country.
1.2 Short period of flow
It is also proposed that the bank notes have a limited period (one to two year) to float in
physical form and also have the extendable time (1-3 month) to deposit in to the bank. There
is no need to panic like as during the demonetization period people faced.
1.3 Low denomination
It is also proposed that the currency notes available from the 2-100 denomination. In this way
the huge amount of payment in cash is restricted, in this way for such type of payment people
go through the digital mode of payment i.e. internet banking, M-banking, debit-credit card, or
formal banking by the cheque or demand drafts. Due to this act it is easy to get the goal of the
financial inclusion.
1.4 Tangible sizes
It is also proposed that the size of the bank notes is tangible in nature, in this way the shape
size and design of the bank notes will be continuous which applies in batch by batch or
according to series of the bank notes, in this way this makes tough to counterfeit note or fake
currency float into the economy. The changes in the currency notes are made in such a
waythat the change in size of the bank notes at minute level cannot be seen by the naked eyes
it looks like a normal bank note.
1.5 Low -security features
The normal bank notes have so much of security features, which increases the printing and
designing cost of the bank note, in this way during the demonetisation act there is huge loss
which the central bank of the respective country bears. To save those losses, it is also

28
Proposed that bank notes should include Bar code/MICR code or other such type of the
security features.
This code includes
 Printing date (01JAN2016)
 Printing time (1 AM)
 Name of printing press(NASHIK press for in concern of India )
 Number of notes print by the a machine (22)
 Note size (5*6)
 Validity date
Finally, bank note barcode should be presented as
01 01 16 NSK 22 5*6 011217
1.6 Semi Digital
It is also proposed that the bank note code can be updated during the deposition into the bank
account in this way there is no need to destroy the bank note but after the extended period the
bank notes become a normal paper that no one can accept the bank note. Bank notes can
show the history of the bank account from which it is withdrawn it can be updated during the
counting of notes by counting machine which is attached to the banking system which has the
blue print and history of note provided by the central bank of country or printing machinery.
1.7 Restricted region of float
It is also proposed that the TEN have limited period to flow in the economy in this way it is
also proposed that the cash or currency note is only acceptable in only respective country
who issued the note, in the case of the payment of foreign nations everyone goes with the
digital mode of payment. If any foreign delegate comes to the country (i.e. India), he is
required to open a bank account and the bank account application should be filled with the
visa application, in the same way the if any Indian want to go to abroad he should go with the
same process too. If any foreign delegate found without this account he/she will be liable for
the long term imprisonment or penalty. By this act the illegal entry in country would be
restricted.
1.8 Totally country made
It’s a fact that most of the countries imports security thread and ink of the currency note from
the same exporting country. In this way the enemy country can import the other countries
security thread and ink and can easily make counterfeit currency. Currency of any country is
easily available anywhere in the world, in this way it becomes to print and float the fake
currency. Fake currency is the soft way to destroy the economy without any harmful attack
with effective manner. It has been observed during the world war-II, Hitler had printed huge
amount of dollar to float in to the Britain, and if he could have succeeded in this act the
situation of the England became worrisome. In the same way the Pakistan also performed the

29
Same act, in this way the huge amount of the fake currency found after the demonetisation in
India.
Proposal of some suggestions related to the bank note.
 The material and security thread and printing material should be used available in the
country.
 Material not easily available for the countrymen or foreigner
 The counting machines should be made by the central government owned company
and destroying of these machines should be in high security.
1.9 Low printing, handling and destroying cost
1.9.1 Low printing cost Due to this the currency should be made by the material
available in the country. In this way it can reduce the printing cost, and printing of
these notes batch wise. In this way the headache and burden on the printing press
should be reduced.
1.9.2 Low handling cost For the batch-wise production of the bank notes the printing
press may installed in several parts of the country with small units. In this way it
is easy for the currency to reach the bank currency chest and in this way the
handling cost and the threat of theft may get reduced.
1.9.3 Destroying cost Due to this, it should be made of the polymer like material. After
the destruction of the currency notes the remains of the currency material can be
used for the making the roads and other recycled products. In this way the total
cost of destroying bank note get reduced and also effects of environmental issue
get reduced.
1.9.4 Health friendly Due to the small life of bank notes it prevails in the economy in
this way the diseases can be caused by the ordinary bank notes to the bankers and
as well as the countrymen.
TEW (Transient Economy Wealth)
Wealth and property are very important after the food but many citizens us to hide their assets
from the government to escape from the tax regime.
Due to this act the income of government slows down and as a result the prosperity of the
country goes down. The properties or wealth which are hidden from the government are as
follows:
1.10 Security Papers
1.11 Property
1.12 Education
1.13 Employment
1.14 Health
Let us discuss in details (Note First ,it is proposed that government want to implement this ,
must be make sure as the legal as well social right by the amending their present allied law).
2.1 Security papers:- Security paper includes the gold bond, shares, company licences,
business registration, Insurance and other investment papers; they should be valid for at least
3 years but not more than five years. It can be verified by online medium by providing digital

30
identification and if any other security investment made by the people should be updated
daily or weekly as per their convenience. This updating can be done through the mobile,
ATM, Passbook printing machines, computer or ordinary phone by the making a call only.
2.2 Property: - Property includes physical property like the land, house, agricultural land,
industrial, school, college land and their construction status. They should be verified in at
least 3 years and not more than five years by online medium if any fault is found it should
punished by fine or jail for at least 10 years.
2.3 Education: - The Government should adopt the uniform system of education, in the case
of India there are so many languages and various income group and religious groups. The
education system should be identical from 1-12 class if one can bear the fees or not then the
government facilitate with the financial help or trying to free education for all. Under this, all
the people should update their education status as well as the specializations every year or
update colleges or school details from where they are studying.
2.4 Employment:- Under this, all people should update their employment status in case of
India after 18 year, this should be verified by the online or face to face meeting with the
candidate to sort out their problems and help in getting jobs in private, government or self-
employment or setting up a small scale industry.
2.5 Health: -The Government should provide all health facilities similarly from top to bottom
to all spheres of society and also provide food and shelter to the eligible people. People
should update their heath details or the head of the family can also update his/her family
health’s details.
3 TEM (Transient Economy precious Material)
As we know that any government is allowed to print the bank notes as per the
proportionate with precious material like Gold, platinum, silver and diamonds. But in the
case of India public holds more precious materials than the government in the
government treasury, in this way the this type of material is useless for the government,
to overcome with these problems, there are some solutions proposed which are given
below
 First, it is proposed that government who wants to implement this , must make
sure as the legal as well social rights by amending their present allied law .
 Just like the BIS hallmark on gold and silver product it should be on all the
precious materials, selling and purchasing bills should be produced in presence of
the third party the bill also includes uniform digital identification but both the bills
should be identical. These bill details updated by the both parties by the online
medium in every purchase or sell.
 No one should be allowed to keep in physical from these precious materials up to
a certain limit, and also take insurance from the government insurance company
 In the case of gold smith he should also have to give all the details related to the
precious material to the bank and should also take insurance of it.
 If the precious material is used as a construction material it should be insured by
the government insurance company by the monetization value of the material.
 If anyone found guilty there will be a punishable offence, should be punished by
the government norms and rules.

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4 TEEA (Transient Economy Expense Account) It is like an ordinary bank account
which can be opened in any government financial institution which links to the tax
department to keep himself free from difficulties to update TEM and TEW open this
account update daily expenses with or without bill but some have evidence like
photograph or thumb impression of another party to which you go to sell or purchase
any good or services. From this you can keep yourself free from the government laws
and actions against you by showing them the statement of this account by updated
account statement.
Benefits
 First ,it is proposed that government who wants to implement this , must make sure
as the legal as well social rights by amending their present allied law .
 It can help to predict actual growth of the economy on fingertip
 Free flowing of the money into the economy
 It offers more time to government as well as public to move economy from cash to
digital
 It makes more transparent and clean economy
 It helps to generate huge employment in the economy that brings prosperity in
society
 It helps the government increase their income, the government can move the
money for the betterment of poor the section of the society.
 The value of country’s currency in the international market
 It helps in the fight against the unemployment, women foeticide, poverty, dowry
and malnourishment.
 It also helps in fight against the corruption, black marketing, smuggling, terrorism,
and human trafficking etc.
5 TEA (Transient Economy social security Account )
This type of account is like your social networking account (face book, twitter, Wats -
app, etc.) in which your personal details are required to open an account, which is
controlled by the private companies. But this account can be opened in the same way and
controlled by the government owned company server which have no option to make
friends and share the information, this is operated by the all-electronic medium i.e.
mobile, laptop, desktop or Google eyes etc.
This has some features given below
 First ,it is proposed that government who wants to implement this, must make sure
as the legal as well social rights by amending their present allied law .
 This account is linked to the master server of national security council. This
information is shared with all the local bodies working in the nation without
disclosing the details of that person who uploaded that information
 Anyone can upload the pictures, text or call of any suspicious happening around,
carefree from this the police or other authority would panic you
 But make sure that don’t upload intimate pictures which are away from the social
or humanity, if you do that please give the full description on it.
 If you can meet any unknown person or go to unknown palace you can upload the
information if anything happened to you and if your parents go to the police for
filing a complaint for your missing, the police will recover you without any harm
to you.

32
 If you give room or house on rent to a person just upload the picture along with
his/her id.
 If anyone has been caught red handed doing anything suspicious then you just
click a picture and upload in your account.
Last but not the least this is made as a legal right of the people. Before the appliance of
process of demonetisation with TEN first of all the government should go through the
introduction of TEW, TEM TEEA and TEA by the making it as a legal rule and wait for the
result for at least two years or more after that if result comes up to the mark or not. Because
the TEN may reduce the faith of public on the government policies or banking system,
because the economy runs with the faith of the public on the government, then government
think about the demonetisation.
The demonetisation with TEN
It will go through a long process and time taking process, because government has no right to
say to the public to exchange the notes in the bank overnight. The steps of demonetisation
with TEN given below –
1. First step: - government gave permission for the printing the bank note as per the
amount of cash going to be replaced, the printing process going to be in regular and
proper manner taking in to consideration all security features of the bank note, the
printing process will go around 3-4 months if all printing presses work in 2 to 3 three
shifts.
2. Second step:- make sure that bank branches and ATMs in particular area must be in
the ratio of the population, if not then more branches should be opened by private or
government banks. Why government need to open these branches? Because new
customers from those areas are forced to open account in the bank.
3. Third step: - bank notes from the printing presses should be dispatched to all the
currency chests made by the banks, ATMs, Cash deposit machine should be calibrated
according to need of new cash.
4. Fourth step: - bank and ATMs start disbursing new notes before the demonetisation
announcement
5. Fifth step: - before the announcement of demonetisation ,the medical facility, water,
sanitation facility are available for the customer or public in nearby or in bank
6. Six steps: - announcement of demonetisation should go in a given manner taking
example of demonetisation in India, announcement made by the prime minister of
India may like that
i. The Rs 1000 and 500 no longer from mid night of 8th November 2016
ii. You have 6 months for the deposition these notes in to their bank account so
no need to panic
iii. If anyone outside country must reach nearby Indian bank or other bank to
deposit demonetised notes and withdraw the currency note of the respective
country in proportionate.
iv. From then RBI introduced new bank note from the 2 to 100 Rs denomination
v. If anyone has no account bank has to open the account and deposit their
money and at that time may withdraw cash as per the bank is able to pay
vi. There is no limit of deposit in any types of bank accounts i.e. saving, current,
recurring, credit card bill, or for the loan payment account.
vii. Only banks can accept demonetised bank notes

33
viii. After the demonetisation process bank employee got intent promotion
and appreciation according to the cash deposit or now of account open their
bank branch but anyone forced public to deposit in their bank may liable for
the demotion or terminated form the job
Above statement that are made not changed at any cost, if any change in any announcements
or statements may create confusion among the public, which we wittiness during
demonetisation in India. After the demonetization government had right to asked from where
he earned money other details related with cash that they deposit in their respective account.
How to countries fought with terrorism
As we know that terrorism is a global challenge, which can be seen in the security budgets of
various countries , they have poverty, malnourishment, unemployment, farmer suicides and
another social and economic problems but they are keep increasing their terror expenditure
day by day . There are so many laws made by the various countries but they become as the
policies and treaties made by the UNO, which have large name and Aim, which are not
remembered by the normal people and somehow become the target of corruption and other
problems.
Take an example of INDIA
In India there is no effective terror law at present take a look at previous anti-terror law made
by the Indian government which is following
1. TADA -1958 (Terrorist and Disruptive Activities prevention Act.) which came after
the Punjab insurgency, it was strong law and also called as draconian Law and against
the right to free speech which is a fundamental right given by the Indian Constitution.
So it was repealed.
2. POTA-2002 (Prevention of Terrorism Act) this act came after by the terror attack on
Indian parliament, the government bought this law, due to more misuse of this law, it
was also repealed by the government.
3. UAPA -1967 (Unlawful activities prevention Act )- it still in existence
4. MCOCA -1999 (Maharashtra Control Organised Crime Act.)- it is still applicable in
Maharashtra and Delhi
5. KCOCA (Karnataka Control Organised Crime Act.)
Hence we can say that there is no proper anti-terror law in India, because terrorism in India
became political issue.
For the fighting with this global problem, all the countries facing or not facing this problem
should come together and must follow anti-terror cycle which is given below.
Global Anti-terror cycle

34
Take an example of India, China, Japan, America and England, because of these nations are
fully dominant in world trade and business, as a result the fund from rest of the world go
through these countries by the formal and informal means (financial or non-financial sectors)
Global Anti-terror-cycle
When they want to fight against terrorism, they must follow these suggestion which are
given below
1. First they should keep themselves ready with high alert security forces in all
participating countries because terrorism is like Hydra Headed monster no one knows
from which place the terrorism came in front of the nation .
2. The people should be made aware of the fact that the legal and personal rights
provided by the government would not hamper
3. They must go through the suggestive methods which are given above at the same time
in all the participating countries
4. As a result the entire terrorist and their franchises came in front of the nations with
various faces, now the government, military, and public come together fight with
terrorism, this fight keeps going till the roots of the terrorism to the end. If anything
related to terrorism remains, then it will be more harmful for the participating
countries. As we have seen after the demonetisation in India there are so many
terrorist activities happened, because the Indian government attacked on one part/face
of terrorism.

35
Above strategy can be understood by the study of following example
If a snake charmer want to catch snake from hole but he don’t know how many snakes are
there in the hole, without taking any risk he keep putting the water in the hole and also seen
the outlets, due to heavy water entered in the hole snake and their family came out from the
hole then he easily catch the snake’s family and their eggs and leave in to the forest or may
kill them.
In the same way the terrorism is also a multifaceted snake and for killing this snake we must
go with above strategy.
This cycle may use for the
1- Corruption
2- Human trafficking
3- Women discrimination or increase the men and women sex ratio
4- Education
5- Other problem which faced by the country
Conclusion
This paper reveals that all countries of the world faced the problems related to the financial
and social problems. The most of the social problems somehow related with finance like
dowry, women foeticides, declining the sex ratio, widow killing, social pressure on the
students, senior citizen killing and poverty, on other hand improper flow of money in the
economy as a result unequal distribution of the wealth. Terrorism, illegal political funding,
and black marketing. By applying the above proposed principles in an economy may slow
down the growth but in the future it will help the overall development. It may reduce the
faith of the public on the government policies but it helps the overall development and
prosperity of the country.
Form the human history, human always go easy in every aspect of life. In this way, but in
the case of money, human never go easy, if any difficulty faced with money may revolt
against the system.
As per the William Jevon said about money “money’s is matter of fours, a medium, a measure,
a standard, a store”
As per the definition the difference between the ordinal, TEN and digital currency given
below
Sr.no OC TEN DC
A medium of exchange YES Yes Yes
Measure YES Yes Yes
Standard YES but
minimum
in bank
Short time store Long-time stored in bank
Traceable NO Yes Yes

36
In case of ordinal currency maximum amount of cash stored at home, in the way the
liquidity in economy less ,high corruption, terrorism and other social and economic evils
faced by the economy as well as society .
No doubt the digital currency sorted out all the problems, but it is very costly in comparison
to ordinal currency, it is in control by only for few countrymen due to its required so much
of investment at personal level. Think about one person who had no money to by daily
essential product for survival. Then why the poor go for the digital mode of payment. In this
way he can keep cash in his hand, not deposit in bank account. In the case of India , 60% of
population lived in the rural areas and also those living in urban areas also feel easy with
ordinal currency then why anyone go for digital mode of payment . But in the case of TEN,
it put some force on the public and also the government to arrange the resources and
services, for the approx. 100% digital mode of country in whole country.
This research paper is an abstract idea which came in my mind, by witnessing Indian
demonetisation. These are the ways which may reduce the problems.
And finally concluded that these solutions, which are described in paper may be one of the
solutions to these problems.
References
1- Top terror laws in India and other information taken from the lecture on the Terrorism’s
Global tentacles by the Sandeep Madhu Shudane Sir (PT Educations )

Transient economy

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