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Demonetisation: Oxymoron or New Economic Movement

Affiliations

  • Rural Management, Department of Commerce, Bhatter College, Dantan, West Bengal, India
  • VGSOM, IIT-Kharagpur, West Bengal, India

Abstract


Black money is like steroid which boosts up economic growth at a cost of long run damage to our economic and social health. The parallel economy in our country is not only huge in its size (over ₹ 30 lakh crore, 20 % of our GDP) but also well networked. Nexus with political bigwigs and administrative officials (Recall involvement of RBI officers in black cash laundering) widens and strengthens this network. Demonetization is expected to strike a heavy blow to this corrupt parallel economy. Experts remain divided over the economic gains of demonetization in the short as well as the long terms. In this paper we have shown that demonetization move will act as an elixir to remedy most of the economic and social ills of our country both in the short and the long runs. It will be shown in this study that once the economic transactions in the country are made transparent economic growth will shoot up and the Indian society sulking under traditional unhealthy conditions will surge ahead. Major technology driven initiatives taken by the government over past two-and-half years including the financial and tax reforms will usher in a new economic movement breaking status quo of jobless growth.

Keywords

Benami Property, Black Economy, Cashless Economy, Demonetisation, GDP, High Denomination Bank Note, Jan Dhan Yojana, Notebandi.

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References


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