Impact of demonetization a comparative study with special referance on indian economy dissertation
Answers
Demonitisation leads to both positive as well as negative impact on Indian economy that are....
Positive impacts...
"" Leads to crubt black money...
"" Leads to check on public savings...
"" Rise in government reserves....
Negative impacts.....
"" Some time faces problem of money supply in market...
"" Economic recessions ,, low investments for some time....
"" Political compulsion and arguments...
-- Be Brainly....
Demonetization is the process of withdrawal of a particular form of currency from circulation. Demonetization becomes necessary whenever there is a change in the national currency. The old unit of currency must be retrieved and replaced with a new currency unit. It involves either introducing new notes or coins of the same denomination or completely replacing the old denominations with the new denomination which is usually carried out as an ambush on the black market. In India demonetization has occurred thrice. The first was on 12th January 1946 (Saturday), second on 16th January 1978 (Monday) and the third was on 8th November 2016 (Tuesday). The purpose of this study is to compare and analyze the impact of demonetizations and their significance in the economic development of India by comparing with other countries. Considering the importance and the influence of Indian economy in the global financial markets and the growth rate of India’s GDP, this article attempts to document the historical importance of the demonetizations and their impact on the export and import. This article also covers the various other countries who tried demonetization, they are, Nigeria, Ghana, Pakistan, Zimbabwe, North Korea, Soviet Union, Myanmar and Australia. The results of this study provide an insight into the demonetization process and about its impact on the growth and development in these countries. Thus, the findings of this study reveal that, India will achieve a significant growth by adapting the demonetization strategy and it will create a huge positive impact on the entire economy in a long run.