Demonetization Debate: A Policy Review
Asian Journal of Law and Economics, 2019
Posted: 11 Jul 2019
Date Written: July 8, 2019
Abstract
This policy review paper aims at making a general discussion of positive and negative effects on the banning decision made by the Indian government of 500 and 1000 rupee notes in order to weed black and corrupted money out of the circulation. The paper also emphasizes on recent arguments with a brief highlight of such incidents around the world in the past. The opinions of economists, financial analysts and intellectuals have been highlighted on this paper based solely on secondary information collected from previous articles,newspapers,magazines and books related to. The paper finds that although there are numerous negative effects on Indian economy such as disturbance in the rural banking system, small & medium enterprises and agro-based business & farming, there are also a few positive impacts as well like an increase in formal & rural economy, a revitalization in economy including increase in tax returns and shift towards non-cash transactions & savings towards bonds & other financial instruments which is beneficial for economy. The paper is expected to be helpful for the academicians and the policymakers seeking academic and policy references.
Keywords: bank, black money, cask, demonetization, ministry of finance, Reserve bank of India
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