Demonetisation: Impact on the Economy

Tax Research Team Nipfp
Authors registered in the RePEc Author Service: Sacchidananda Mukherjee

Working Papers from eSocialSciences

Abstract: The argument posited in favour of demonetisation is that the cash that would be extinguished would be “black money†and hence, should be rightfully extinguished to set right the perverse incentive structure in the economy. While the facts are not available to anybody, it would be foolhardy to argue that this is the only possibility. Therefore, it is imperative to evaluate the short run and medium-term impacts that such a shock is expected to have on the economy. Further, the impact of such a move would vary depending on the extent to which the government decides to remonetise. This paper elucidates the impact of such a move on the availability of credit, spending, level of activity and government finances. [NIPFP Working Paper No. 182]

Keywords: demonetization; cashless transactions; credit; tax evasion; credit; spending; government finances; demonetisation; economy; corruption; crime; informal sector; banking system (search for similar items in EconPapers)
Date: 2016-11
Note: Institutional Papers
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.esocialsciences.org/Download/repecDownl ... AId=11481&fref=repec
Our link check indicates that this URL is bad, the error code is: 503 Service Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ess:wpaper:id:11481

Access Statistics for this paper

More papers in Working Papers from eSocialSciences
Bibliographic data for series maintained by Padma Prakash ().