Pros and Cons of Demonetization as a Major Economic Leap Forward
Pros and Cons of Demonetization as a Major Economic Leap Forward

Author(s): Shaktiraj Bhavsar
Subject(s): Social Sciences, Economy, Governance
Published by: Scientia Moralitas Research Institute
Keywords: Policy; Demonetization; Economy; Government;
Summary/Abstract: Marking half of his elected term as India’s Prime Minister, Narendra Modi, announced the Policy of Demonetization. Primarily aimed at eradicating black money, this policy caught the nation off-guard, resulting in financial chaos. The old unit of currency and its highest denominations that were the notes of rupees 500 and 1000 were demonetized and pulled out of the total cash flow in the country. These two denominations constituted 86% of the domestic cash supply. The objective of this paper to systematically analyze the consequences of this bold and unexpected policy through the secondary data. This policy change was strategically placed to block financial funding to terrorist organizations at the Kashmir border.

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