Demonetization Collision on the Indian Economy

JANNU ANUSHA

Demonetization Collision on the Indian Economy

Authors: JANNU ANUSHA

Unique Paper ID: 145131
Volume: 4
Issue: 7
PageNo: 450-458

Keywords: demonetization cashless transactions credit tax evasion.

Abstract:
The argument posited in favour of demonetization is that the cash that would be extinguished would be â€œblack moneyâ€ 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.

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ISSN: 2349-6002
Volume: 4
Issue: 7
PageNo: 450-458

Demonetization Collision on the Indian Economy

Available:https://ijirt.org/Article?manuscript=145131

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