Demonetisation in India and its Effect on Growth

Abstract: Many questions have been raised regarding the need & efficacy of demonetization. Different sceptics have different speculations related to the impact of the move on the growth of the Indian economy, with general perception supporting the quantity theory of money. The paper checks for the reliance of growth on different components of money supply or feasibility of Quantity theory of money in the Indian context through various data analytical techniques. Further, it attempts to answer the need for the economy to demonetize. Also, the paper analyses the readiness of the Indian economy to become cashless & its implications in future.

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