Demonetization Debate: A Policy Review

Asian Journal of Law and Economics, 2019

Posted: 11 Jul 2019

See all articles by Sajjad Hosain

Sajjad Hosain

Sichuan University - Business School

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

Suggested Citation

Hosain, Sajjad, Demonetization Debate: A Policy Review (July 8, 2019). Asian Journal of Law and Economics, 2019, Available at SSRN: https://ssrn.com/abstract=3416849

Sajjad Hosain (Contact Author)

Sichuan University - Business School ( email )

China
13258313858 (Phone)

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