The Impactful study of Advantages and Disadvantages of Demonetization

Abstract

The exploitation of the government is a big shock to the economy. The impact of the shock over the medium term will depend on how much currency will be replaced at the end of the exchange process and how much money will be circulated. Although the claim that money that would be extinguished would be "redundant", it must be properly extinguished to justify the distorted economic stimulus structure, but this claim is based on an impression rather than a fact. We cannot pass on the facts to anyone, but it would be reckless to claim that this is the only possibility. As discussed above, it is possible that these cash balances have been used as a medium of exchange. In other words, while cash mediates legitimate economic activity, when the currency ends, economic activity will shrink, which is the cost to be taken into account when assessing the effects of desertion on the economy. Economy and its agents.

Keywords: Demonetization, security, black money, RBI, currency.