Indian Journal of Society and Politics

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Demonetisation:Causes and Impact


Affiliations
1 Department of Political Science, DDU Gorakhpur, University, Gorakhpur, U.P., India
 

As the news of demonetization rushed round the country, it was received with surprise and followedby huge lines in front of ATMs, shops, and petrol pumps. People seeking to exchange their old notes had to stand in huge queues, and many people lost their lives. At the Same time many people supposed that government’s move may turn out beneficial for the common man. The recent step of demonetisation of the high denomination currency notes is, argue its supporters, a master stroke to flush out black money, dismantle terror funding, and crack down on money laundry and counterfeit currency.However, the real motive behind this unprecedented move seems to be undisclosed so far. The economists, intelligentsia, social scientists, politicians and the common man are in confusion regarding the size of its impact on black money and corruption and finally on economic growth and development. This step will affect Indian economy comprehensively. This paper will evaluate causes and impact of recent demonetisation.

Keywords

Demonetization, Black Money, Cashless Economy, Corruption, Counterfeit Currency.
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  • Kumar, Arun (2016) Estimation of the Size of Black Economy in India, 1996-2012

  • Business Standard, December 4, 2016

  • The Hindu, Nov 09, 2016

  • The Economic Times, Demonetisation: A big boon not to be wasted by banks, Jan 25,2017

  • Reserve Bank of India Annual Report 2015-2016, (Dec 6, 2016)

  • Frontline, Demonetisation does nothing to stop generation of black money, December 9, 2016

  • Business Today. November, 30, 2016 “Top economists are divided on demonetisation’

  • The Hindu, Business Line, Demonetisation will benefit economy in long run. Nov 12,2016

  • Waghmare, A. Demonetisation will hit farmers, informal worker; long term outlook positive. HindustanTimes. Nov 15, 2016.


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  • Demonetisation:Causes and Impact

Abstract Views: 192  |  PDF Views: 1

Authors

Surendra Kumar Yadawa
Department of Political Science, DDU Gorakhpur, University, Gorakhpur, U.P., India
Gopal Prasad
Department of Political Science, DDU Gorakhpur, University, Gorakhpur, U.P., India

Abstract


As the news of demonetization rushed round the country, it was received with surprise and followedby huge lines in front of ATMs, shops, and petrol pumps. People seeking to exchange their old notes had to stand in huge queues, and many people lost their lives. At the Same time many people supposed that government’s move may turn out beneficial for the common man. The recent step of demonetisation of the high denomination currency notes is, argue its supporters, a master stroke to flush out black money, dismantle terror funding, and crack down on money laundry and counterfeit currency.However, the real motive behind this unprecedented move seems to be undisclosed so far. The economists, intelligentsia, social scientists, politicians and the common man are in confusion regarding the size of its impact on black money and corruption and finally on economic growth and development. This step will affect Indian economy comprehensively. This paper will evaluate causes and impact of recent demonetisation.

Keywords


Demonetization, Black Money, Cashless Economy, Corruption, Counterfeit Currency.

References