Demonetisation hit India’s economic activity in the period following the November 8, 2016, event but the impact had dissipated by the summer of 2017, said a working paper by the US-based National Bureau of Economic Research. “Our results imply demonetisation lowered the growth rate of economic activity by at least 2 percentage points in the quarter of demonetisation,” said the working paper entitled ‘Cash and the Economy: Evidence from India’s Demonetisation.’ It compared the move’s effect to a monetary tightening equivalent to about two percentage points. The paper, which has not been peer reviewed, said that India’s economic activity declined 3 percentage points or more in November and December 2016 even though its effects were dispelled over the next few months. It also noted some of the possible longer-term benefits of the measure that saw 86% of the currency notes in circulation being withdrawn. “We conclude that while the cashless limit may appropriately describe economies