demonetisation
Học thuậtThân thiện
Definition
Noun: * The act or process of stripping a currency unit (such as a specific coin, banknote, or a commodity like gold or silver) of its status as legal tender. This means the designated form of money can no longer be used to settle debts or transactions within a country.
Usage
- Demonetisation is a formal economic term used to describe a specific government policy action. It is typically used in discussions of economics, finance, history, and public policy.
- It refers to the official withdrawal of a currency from circulation.
Examples
- The sudden demonetisation of the high-value banknotes caused significant short-term disruption to the cash-based economy.
- Historians study the demonetisation of silver in the 19th century to understand its impact on global trade.
- The government announced the demonetisation of the old series of coins to introduce new, more secure ones.
Advanced Usage
- Demonetisation is often undertaken to combat counterfeiting, black market activity, or to transition to a new currency system. It can also be a tool for monetary policy.
- The term can be applied in a broader digital context, such as the demonetisation of a type of online content by a platform, meaning the creator can no longer earn revenue from it. However, the primary and most common usage remains in the context of physical currency.
Variants and Related Words
- Demonetize (verb): The action of ending something's use as legal tender.
- Example: The government decided to demonetize the old 500-rupee notes.
- Remonetisation (noun): The process of restoring a currency's status as legal tender.
- Legal Tender (noun): Money that must be accepted if offered in payment of a debt.
Synonyms
- Withdrawal (of currency)
- Invalidation (of currency)
Antonyms
- Monetisation
- Remonetisation
Related Phrases/Concepts
- Currency recall: A similar concept, often used alongside demonetisation.
- Monetary policy: The broader framework within which demonetisation can be a tool.
- Cash crunch: A frequent short-term consequence of sudden demonetisation.
Noun
- ending something (e.g. gold or silver) as no longer the legal tender of a country