Once upon a time, an old fruit vendor lived in a village along with his teenage son named Shiv. One day, the vendor fell ill and so he requested his inexperienced son to monitor his business for a day. Shiv agreed and went to the wholesale market to purchase some lemons. The wholesale vendor was very crafty; he quickly realised the inexperience of the young man and cheated him. The wholesaler sold inferior quality lemons to the young man and Shiv, without realising the inferior quality of lemons sold them to the village households. However, one of the houses happened to be the house of village Kotwal (Police) .Within no time Kotwaljee understood that the lemons were of an inferior quality and he promptly arrested Shiv in the village Chowky (police station). The old fruit vendor came to the Chowky to rescue his son.
The old vendor was terrified to see Kotwaljee and on the top of that, Kotwaljee demanded a penalty from him for releasing Shiv from the prison. He ordered the fruit vendor to exchange the inferior lemons that were sold to the villagers by Shiv with the superior ones. However, the vendor pleaded before Kotwaljee; he did not have any good quality lemons with him because his foolish son had invested his entire money in purchasing inferior lemons from the markets in the morning. Understanding the problem of the vendor, Kotwaljee ordered the vendor to exchange two inferior lemons against every inferior lemon sold by Shiv to the villagers. However, the vendor looked even more worried. The old man then requested Kotwaljee if he may exchange one superior quality orange against one inferior lemon sold by his son. Kotwaljee nodded in affirmation and freed Shiv from the prison.
On the way home, Shiv said,”Father! You should have accepted Kotwaljee’s offer of two inferior lemons because in that way we would have cleared the stock of inferior lemons lying with us.” He added,”However, now we will be gifting superior oranges to the villagers and that too without any profit.”
The fruit vendor laughed and explained,”Son! You are wrong because that penalty sentence spelled disaster for us.” He then asked Shiv, “How many times will you exchange inferior lemons with the villagers?”
Shiv looked confused and so the old man simplified his explanation,”Let’s assume that you have sold 100 inferior lemons to the villagers in the morning. Now, as per the penalty sentence, we will have to exchange two inferior lemons against one lemon sold by you. Thus the total number of inferior lemons with the villagers will rise to 200. What will we do when the villagers come to us to exchanges these 200 inferior lemons?” Shiv immediately answered,”As per the penalty, we are bound to exchange 400 inferior lemons against the villagers’ 200 inferior lemons!” The old fruit vendor laughed and said,” These series of exchanges of the inferior lemons will be a never ending story till the time our livelihood is completely destroyed. The old man added,”However, now by changing the medium of exchange from lemons to oranges, I have completely negated the occurrence of this domino effect!”
The next day, as per the penalty imposed by Kotwaljee, Shiv promptly facilitated the exchange of inferior lemons with superior oranges and then went to the market with the old fruit vendor to seek answers from the crafty wholesaler.
Dear Readers – If you read the story carefully, you shall understand its unique linkage to the exercise of currency demonetization in India.
The Govt of India ordered the citizens of India to exchange their old currency notes Rs. 500/- and Rs. 1000/- (inferior lemons) with new currency notes Rs. 2000/- (superior oranges). The printing of a Rs.2000/- note was done for the first time in the history of independent India. The purpose of printing the note of this denomination was to create a unique medium exchange that was earlier unavailable to the Indian citizens (and also the black money holders).
Further, had the Govt introduced the new notes of say Rs.1000/- in place of Rs. 2000/- then it would have resulted into a domino effect described in the story (the black money holders exchanging their unaccounted wealth in old currency notes of Rs.1000/- or Rs,500/- with the new currency notes of Rs.1000/- and that too multiple times.) The Govt thus negated this possible domino effect of avoiding the exchange of inferior lemons with more inferior lemons. They in stead created a new medium of exchange – Rs. 2000/-, which is nothing but the superior orange of our story.
——Have a great day!——