12/4/2021 Demonetisation: Let's compare the long term and the short term impact - BusinessToday

Business Today Aaj Tak GNTTV Dailyo Ichowk India Today Lallantop

News / LATEST / Economy Politics / Demonetisation: Let's compare the long term and the short term impact Feedback

Demonetisation: Let's compare the long term and the short term impact
As the debate around demonetisation rages on in the country, the economists have expressed varied opinions on this unprecedented reform. Here are some of
the long term and short term impact of government's move to make India a cashless economy.

Ensure Test Accuracy & Result OPEN

Listen to this article now

-00:34 1.0✕

BusinessToday.In
Nov 30, 2016, Updated Nov 30, 2016, 6:29 PM IST

As the debate around demonetisation rages on in the country, the economists have expressed varied opinions on this unprecedented
reform. Here is the long term and short term impact of government's move to make India a cashless economy.
  Short-term impact  Long-term Impact
GDP GDP growth to be negatively impacted by 0.5-1% due to drop With a tax net widening after restriction on cash economy,
Growth in consumption GDP in the long-term likely to get a boost
In ation likely to come down due to low demand owing to Since e ect of lower demand can have a lagging impact on
In ation
liquidity problem in ation, prices may remain at or fall in the long term
If demonetisation boots formal banking and more cash
Interest With Banks ush with cash, interest rates may come down in
continues to come in the system, interest rates may fall
rates the short-term
further 
G-sec Yields likely to fall as liquidity in the banking system means Likely to remain at to positive depending on how in ation
yield interest rates are likely to fall plays out and how's the country's scal situation
Unlikely to have much impact as most of the gains (RBI With likely increase in the size of formal economy, tax
Fiscal
surplus, higher tax collections, penalties) will accrue after collections would improve improving the country's scal
De cit
FY2017.  situation.

https://www.businesstoday.in/latest/economy-politics/story/demonetisation-long-term-and-the-short-term-impact-65995-2016-11-30 1/2
12/4/2021 Demonetisation: Let's compare the long term and the short term impact - BusinessToday

Pendulum Impact Test

Machines
Saturday, December 04, 2021 | Updated 13:24 IST
Ensure Test Accuracy & Result
Charpy/Izod ISO, ASTM, DIN & More Plastics
Pendulum Impact Testers Machine. RFQ!
tiniusolsen.com

OPEN

POST A COMMENT (3)

Get Daily Newsletter

Enter your email I agree to receive newsletters SUBSCRIBE

Economy Trending Infra Stocks Education

Corporate Magazine Pharma Auto Jobs

Markets COVID-19 Real World Lifestyle

Estate

About us Contact us Advertise with us Privacy Policy Terms and Conditions Partners Press Releases

Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today

https://www.businesstoday.in/latest/economy-politics/story/demonetisation-long-term-and-the-short-term-impact-65995-2016-11-30 2/2