Impact of Demonetization on Indian Economy
Journal Title: International Journal of engineering Research and Applications - Year 2017, Vol 7, Issue 11
Abstract
The argument to place in favour of demonetisation is that the cash that would be extinguished would be “black money and fake currency” and hence, should be rightfully extinguished to set right the unreasonable incentive structure in the economy. While the facts are not available to anybody, it would be foolhardy to argue that, this is the only possibility. Therefore, it is imperative to evaluate the short run and medium-term impacts that such a shock is expected to have on the economy. Further, the impact of such a move would vary depending on the extent to which the government decides to demonetize. This paper elucidates the impact of such a move on the availability of credit, spending and level of activity and government finances.
Authors and Affiliations
Dr. P. Subbarao
Keywords
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