Impact of demonetization on the indian economy
Demonetization announced on November 8, 2016 was aimed at dealing with corruption, black money, counterfeit currency and terror financing. Although demonetization holds enormous potential benefits in the medium to long-term, given the scale of operation, it was expected to cause temporary disruption in economic activity. Therefore, it is imperative to evaluate the short run and medium-term impacts that such a shock is expected to have on the economy. Further, the impact of such a move would vary depending on the extent to which the government decides to demonetize.