Impact of demonetization on Indian economy

Abstract

This Paper is done in order to understand the impact of recently announced demonetisation on the Indian Economy. Firstly, we analysed the timeline of events that have impacted the demonetisation. Post that we looked at the measures that could impact the demonetisation to be successful. We also looked at the list of measures which can make a demonetisation successful or unsuccessful based on certain macroeconomic parameters. Various Monetary disclosure schemes have also been analysed comprehensively for the purpose of this analysis. At the end we have used the identity equation to estimate the impact of Demonetisation on the Indian Economy. For this we have concluded that the consumption has slightly decreased in the month of January due to a lesser availability of cash in the system.