Research Methodology ( Demonetization)

                RESEARCH  METHODOLOGY




The study is descriptive in nature and attempts to explore the impact of demonetization on various sectors economy like agriculture, manufacturing, service sector and issue like tax evasion, combating black money, counterfeit currency hawala transactions terror financing, formalisation and digitalization of economy etc. the study uses secondary data available from Reserve Bank Of India publications. Union Finance Ministry date and statistics of central Board of Direct Taxes. The report of various experts and finding of other researchers have also been look into.




Objective: 

# To study experience of impact of demonetization in various countries in past years.

# To analyse the current immediate impact of demonetization on Indian economy.

#To understand meaning and reason of demonetization.

# To analyse positive and negative effect of demonetization on Indian economy as well as on various sectors of economy.


Definitions :

* Demonetization is a drastic innovation into the economy that involves the legal tender status of a currency.

* Demonetization is a weapon used to stabilize a currency and fight inflation to facilitate trade and access to markets and to push informal economic activity into more transparency and away from black and greay market's.




* Demonetization is an act of discarding the legal tender status of a currency unit in circulation. Anticipation positive changes on the liquidity structure as a whole nation often adopt demonetization policy as a whole to maintain the balance of current economic system of the country. It will help to control hyperinflation and gives economy a boost in respective fields.








Name of Country which implement Demonetization.

Table -1:-

Country - Germany 
Year        - 1923
Objective - To prevent inflation 
Result       - Inflation fail


Country -     USA 
Year         -1969
Objective -  To resist Black Money 
Result       - Successful 


Country - U K
Year        -1971
Objective - To bring uniformity in currency 
Result      - 
                   Successful in the UK but failed in other countries .



Country - Ghana
Year       - 1982
Objective - To control Black Money 
Result       - people turned to foreign currency 


Country - Myanmar 
Year        -1987
Objective - To resist Black Money 
Result      -  Led to political dispute and thousands of people died .


Country - Nigeria 
Year       - 1984
Objective - To fix debt. Burden and inflation ridden economy 
Result       - Economy collapsed 


Country - Zaira 
Year       - 1990
Objective - To withdraw obsolescent currency from the system 
Result       - Partly Successful 



Country - Formor Soviet Union 
Year        - 1991
Objective - To fight against unearned income, Smuggling and corruption.
Result       - The overall Economic system eventually crushed.


Country - Australia 
Year       - 1996
Objective - To crab Black Money and improve security features on notes
Result      - Successful 



Country - Europian Union 
Year        - 2002
Objective - Introduction of Unified currency "EURO"
Result       - Successful currency change over 




Country - North Korea 
Year        - 2010
Objective - Sliding out from the Black Money and counterfeit currency.
Result      - Messed up 



Country - Zimbabwe 
Year        - 2010
Objective - Sliding out from hyper inflation 
Result       - Failed 





Country - Pakistan 
Year        - 2015
Objective - To get rid of Black Money and Counterfeit currency.
Result       - Messed up 


Country - Philipines 
Year       - 2016
Objective - To preserve integrity of currency 
Result      - Yet to be known 


Country - Venezuela 
Year        - 2016
Objective - To curb the rising inflation rate 
and to tackle the threat of the transitional mafias in country 
Result        - Violent protest including destruction of infrastructure 












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