Assistant Professor in Commerce,
The demonetization had a great significant and immediate impact on the state of the Indian economy. In this paper, an attempt has been made to study the impact of demonetization on the money supply in Indian economy and to analysis the effect of demonetization on the various components or measures of the money supply. Through this paper an attempt is made to discuss the findings about positive and negative impact of the demonetization. However this measure adversely affects the supply of the money in the economy. According to prof. fisher the flow of money supply is product of stock of money held by the public and velocity of circulation of money. The monetary authority can increase or decrease the quantity of currency in circulation according to the requirement of the economy. From April, 1968 the RBI also started publishing another measure of the money supply which is called Aggregate Monetary Resources (AMR). However preparation for demonetization was lop-sided and its impacts was terrible on Indian public.
Demonetization, Spendable, Circulation
