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 foolhardy to argue that this is the only possibility. Therefore, it is imperative to evaluate the short run and medium-term collisions that such a shock is expected to have on the economy. Further, the collision of such a move would vary depending on the extent to which the government decides to demonetize. This paper elucidates the collision of such a move on the availability of credit, spending, and level of activity and government finances.
Article Details
Unique Paper ID: 145131
Publication Volume & Issue: Volume 4, Issue 7
Page(s): 450 - 458
Article Preview & Download
Share This Article
Join our RMS
Conference Alert
NCSEM 2024
National Conference on Sustainable Engineering and Management - 2024