1)How does a country's social values influence its economic policies?

2)What are the differences between Mercantilism and Keynesian economics besides global trade?

3)Why do the majority of people still support demonetization even after the decrease of economic growth indicators?

1)Social values can have a positive or negative influence on economic policies, depending on the qualities of the said values. The following are ways in which a country?s social values influence its economic policies:

• Economic transparency. A country whose social values are founded on integrity is able to formulate policies based on integrity. Economic policies patterning distribution of resources, equality, and inequality are more transparent and implemented in a fair manner when integrity is a component of social values in the country.
• Economic backwardness. This is a status that results from poor implementation of economic policies. It is associated with a failure in governmental, organizational and institutional social values. A widespread moral hazard in the economic system of a country corrupts the economic policies in a way that their intended effects to the economy are hardly felt.

2)Mercantilism is an economic policy that is designed to maximize export and minimize the import of country. It includes a national economic policy aimed at accumulating monetary reserve through positive balance of trade of finished goods. The main motive of these policies is to reduce possible current account deficit or reach a current account surplus.

Keynesian economics is a group of various economic theories related to how in short run and during recession economic output is influenced by its total demand in the economy. According to John Maynard Keynes aggregate demand does not always equal to the production capacity of economy. It also focuses on using government policies to manage aggregate demand in order to address or prevent economic recession.

Mercantilism promotes government regulation for state power and military power for economic growth on other side Keynesian promotes government regulation for increase in aggregate demand and aggregate output for economic growth.

3)Demonetization always not give good result instead it sometimes decrease economic growth but people still supports it because even demonetization create problem in economy but it may also help in the economic growth.

Due to the following reasons majority of people still supports demonetization:

• Reduction in corrupt practices, demonetization puts a complete full stop on malpractices of black economy. People stops hording their money which will reduce the black money circulation in the economy.
• Because of demonetization the banking system improves in a considerable manner. Moving toward cashless economy also implies to better access to credit and revamping of financial institutions.
• Reduce instance of tax avoidance; income tax authorities will keep track on money deposited with financial institution due to improved banking system and digitalization the tax evasion reduces in the economy.