International Journal of Applied Research
Vol. 4, Issue 3, Part C (2018)
Demonetization: Impact on major macroeconomic variables
Komal Kanwar Shekhawat and Neha Jain
The Government of India announced the demonetization of all 500 and 1,000 currency notes on 8 November 2016 with the objective to curtail the shadow economy, combat corruption, to check tax evasion and to crack down on the use of illicit and counterfeit cash. However, this move is expected to cleanse the formal economic system and discard black money from the same. The stripping of currency notes of its status as legal tender could have both positive and negative impacts on the economy. Hence, this paper intends to study the impact of demonetization on some of the major macroeconomic variables of Indian economy such as- Inflation, Industrial production, GDP estimates, Agricultural production and Employment growth. The study found that even after observing a fall in the growth rate of Agriculture production, Purchasing Managers’ Index, Employment, Inflation and GDP forecasts, these indicators are expected to retain their growth rates in the near future.
How to cite this article:
Komal Kanwar Shekhawat and Neha Jain. Demonetization: Impact on major macroeconomic variables. International Journal of Applied Research. 2018; 4(3): 179-182.