ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Black Money and Its Impact on Savings and Investment

Black Money and Its Impact on Savings and Investment Arun Ghosh The impression, shared even by experts, that the rate of unrecorded savings out of black income is higher than our recorded saving rate and that, therefore, the rate of saving is understated in national accounts statistics, is based on a misunderstanding of the methodology used for estimating savings. Nor does black money go to finance large-scale investment activity; it mainly goes for conspicuous consumption, or speculative activity or acquisition of urban property.

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