A Critical Analysis of Demonetisation Effects on Indian Economy

Author:Rekha Garg

Abstract:
PM Mr. Narendra Modi announced demonetization on 8 November 2016. One of the most disruptive actions in India’s economic history i.e., the invalidation of 86% of currency in circulation at one stroke. Withdrawal of high denomination notes is a radical measure the government would normally resort to in an attempt to counter currency forgery, one of the reasons Modi cited for the note ban, together with unearthing black money and curbing terror finance. Demonetization was both an economic and a political necessity of India announced the demonetization of all 500 and 1000 bank notes. A year has passed since that momentous decision, let’s see how it is planned and executed by the Reserve Bank of India. Demonetization has been billed as the ‘Biggest Monetary Experiment’ in recent times in the entire world.

Keywords:Keywords: Demonetization, Invalidation, Unearthing, Black Money, GDP.

DOI:

International Journal of Trade & Commerce (Vol: 6 Issue:2)