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DEMONETIZATION AND THE BLACK ECONOMY

1 January 2018

Arun Kumar

In November 2016, the central government announced the demonetisation of all R500 and R1,000 notes, which made up 86 percent of the circulated currency in India, with the expressed intent of curbing the flow of black money. A year later, economist Arun Kumar, an expert on India’s black economy, assesses the effects of this move. His new book argues that demonetisation has had little effect on the overall scale of the black economy, and that it has slowed growth and created more inequality.

Penguin, 240 pages, Rs 499

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READER'S COMMENTS

One thought on “DEMONETIZATION AND THE BLACK ECONOMY”

Can’t be more correct. Black economy essentially is the baby of Corruption and Tax evasion. Both Thrive and are stronger today than before. One does not require the numbers to prove this. Go out to offices like the RTOs, the Subregistrars offices etc and experience the level of corruption. On the other hand, the percentage of people paying Direct Taxes remain the same. Sellers don’t issue bills when you buy your merchandise, thereby mocking the GST.

Then what have these great two Demon and GST achieved?

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