New Delhi, Nov 19: According to a latest paper published by the National Institute of Public Finance and Policy (NIPFP), a research institution under the Ministry of Finance, says that demonetisation is "a large shock to the economy".
The conclusion of NIPFP is in total contradiction to what Prime Minister Narendra Modi and Finance Minister Arun Jaitley have been maintaining about demonetisation and its long-term gain for the economy of the country.
The paper--Demonetisation: Impact on the Economy--published by NIPFP on 14, November, 2016, warns that demonetisation might have little impact on black money, while leading to "a contraction of economic activity in the economy".
On November 8, Prime Minister Narendra Modi announced scrapping of Rs 500 and Rs 1,000 currency notes to fight against black money, counterfeit currencies and terror funding.
Since the announcement was made, most of the people are struggling to get hold of valid currency notes by queuing up in front of banks and ATMs.