Indian economy and demonetisation: way forward

Indian economy and demonetisation: way forward

The delegalisation of the two highest value currency notes announced by Indian government on November 8th 2016 has created an impact on the economy at a scale which no other piece of policy has rivalled for a long time.
 
This brief tlooks at the rationale of the measure and scans it for lessons learnt. The analysis will also pay particular attention to the role of digital money and corresponding role of paper money.

There are also two more concerns which are touched upon in this study:
  • globally the subject of cash as a physical currency versus its arrival as an electronic medium has become very relevant in the 21st century. One of the first large scale application of the principle was through the launch of Bitcoin. More such, are in the offing. Those create a vast and undefined region for economic analysis to venture into
  • at a more basic level as economies of Asia and, particularly Africa find themselves rising up the growth path, they have been assailed by the impact of inequality and corruption that a growing economy without sufficient regulatory control are subjected to. The medium for such deviant practices are often based on manipulation of the cash economy.
Does the Indian demonetisation experiment have any lessons to offer in this context?
 
 
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