Effect on Demonetisation in Industry

Abstract

Demonetisation of Rs. 500 and Rs. 1,000 notes by the Government of India is a very bold act and welcoming one. The hoarding of money by unscrupulous people led to double pronged impact on the economy. First the prices of commodities have gone up quite steeply due to free flowing of high value currencies by a handful of few and second the purchasing power of money in real terms has slid badly to common people who are the majority and in whose possession the savings is very reasonable.