Central Data Catalog

Citation Information

Type Working Paper
Title Demonetization and Its Impact on Employment in India
Publication (Day/Month/Year) 2017
URL http://econpapers.repec.org/paper/arxpapers/1702.01686.htm
On November 08, the sudden announcement to de-monetization the high denomination
currency notes of Rs. 1000 and Rs. 500 sent tremors all across the country. Given the timing, and
socio-economic and political repercussions of the decision, many termed it a ‘financial
emergency’. Given high proportion of these notes in circulation (over 86 percent),
‘demonetization’ led to most economic activities, particularly employment, affected in a big
way. Political parties, however, seemed divided on the issue, i.e. those in favor of the decision
feel it will help to curb the galloping size of black money, fake currency, cross boarder terrorism,
etc. In sharp contrast, the others believe it is a purely un-thoughtful, decision, based on no or
poor understanding of ‘black economy’, and hence is only politically motivated in wake of the
assembly elections due in a couple of states particularly UP. In addition, they also believe, the
given decision of ‘demonetization’ is far from ground reality, and hence is unlikely to fetch
anything tangible except causing miseries to millions of people by making them stand in queue
day in and day out.

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