Abstract
India’s currencies in circulation are at 12.1% of GDP. Cash on hand is projected around 3.2% of household assets, higher than investment in equities, or roughly around $ 220 billion. In cash, 87% is in the form of Rs.500 and Rs.1000 notes or roughly around Rs.14 lakh crores ($190 billion). On that the significant portion of the household cash on hand is generated by economic transactions that are not reported to tax authorities or generated through corruption. Removing the higher denomination money would either result in these being brought into the system or the money just disappearing. In this paper an attempt has been to made to list out the probable consequences of this decision on various economic variables. Demonetisation is paves the new opportunities as well as misery to the economy of India.
Keywords: Demonetisation, Opportunities,
References
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