Demonetisation: Impact on Investments and Economy – An Evidence from Indian Economy

Abstract

Demonetisation, as a concept that has been often used as a tool to reduce hyper inflationary pressure in the economy and also when the government wants to replace theirold currency with the new one. According to the government, the current moves on demonetisation was targeted towards combating untaxed black money, corruption, terrorism and encourage cashless transactions. This move by the government is likely to have long term impact on the economy as well as on the investment scenario. This paper attempts to describe the short term and long term impact of such a move on various sectors of the economyand government finances. For this studyvarious magazines and journals have been used as it is a conceptual paper. Thus, the focus is on to understand more about the concept and the impact on economy via other parameters. Therefore, qualitative and quantitative data have been used.