DEMONETIZATION – AN ECONOMIC ANALYSIS

Authors

  • Dr .Ritu Sharma Associate Professor, Jagannath University, Bahadurgarh

Keywords:

Abstract

A lot of observations have been recorded recently on the impact of demonetization on Indian Economy. There have been many studies and opinions of economists like Basu (2016), Chanda (2016), Chandrashekhar (2016), Dasgupta (2016), Rai (2016) among others in formal as well as informal media about the sudden decision of Indian government to demonetize currency notes.

This paper attempts to study the theoretical viewpoint based on money supply and segmentation of markets. It will further analyze the effect of sudden changes in monetary policy and the uncertainty created thereafter on businesses.

Demonetization here refers to deeming of all or some currency denomination ineligible to be used in transaction. Money supply is understood as the sum of currency in circulation, demand deposits with commercial and cooperative banks, interbank deposits, and post office savings deposits.

References

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Published

2017-07-31

Issue

Vol. 3 No. 6 (2017): July 2017

Section

Articles

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