Assessing the impact of demonetization of 2016 on the Indian economy: An exploratory study

Abstract

The goal of this research is to identify the short-term impacts of demonetization of 2016 on Indian economy and then finding its probable future impacts in the longer run. The study found that major aim of the move was to curb the menace of black money and the best thing that happened as a result was the changing payment behavior of the consumers. An uncertainty of cash supply can also lead to more demand for cash. The move will increase liquidity in the formal banking system but a decrease in production will deviate from its core objective.