Indian Economy and Demonetisation: Way Forward

The delegalisation1 of the two highest value currency notes announced by Indian government on November 8th has created an impact on the economy at a scale which no other piece of policy has rivalled for a long time. While plenty has been and continues to be written and spoken about the measure in media and academic literature since then, they have stressed on the efficacy of the measure and its implementation. Here, we shall be more concerned with the way forward for the economy post delegalisation. In this context, we shall touch upon the rationale of the measure and scan it for the lessons learnt. The analysis thereof will also pay particular attention to the role of digital money and corresponding role of paper money.2