Demonetisation: Some Theoretical Perspectives

Parag Waknis

MPRA Paper from University Library of Munich, Germany

Abstract: On November 8, 2017, the Prime Minister of India Narendra Modi declared currency denominations of Rs.500 and Rs.1000 to be illegal for use in transactions. These currency denominations together constituted almost 85% of total currency in circulation according to some estimates. Based on essentiality of money, and a segmented markets model perspective, I analyze the effects of this surprise demonetisation policy on the Indian economy.

Keywords: demonetisation; essentiality of money; segmented markets; informal economy. (search for similar items in EconPapers)
JEL-codes: E42 E51 E52 (search for similar items in EconPapers)
Date: 2017-01-23
New Economics Papers: this item is included in nep-iue, nep-mac, nep-mon and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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