IMPACTS OF DEMONETIZATION ON INDIAN ECONOMY

Author (s) : Dr. V.RADHA

---

Abstract :
The argument posited in favour of demonetization is that the cash that would be extinguished would be black money and hence, should be rightfully extinguished to set right the perverse incentive structure in the economy.  While the facts are not available to anybody, it would be fool hardly to argue that this is the only possibility.  Therefore, it is imperative to evaluative 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 hypothesis that demonetization is a part of the transition towards digital economy.  This paper elucidates the impact of such a move on the availability of credit, spending, level of activity and government finances.

Keywords : Medium-term impacts, credit, spending.

Conference Date : 30/08/2019

Pages : 137

Paper ID : 19135