Informal Credit Markets and Black Money-Do They Frustrate Monetary Policy

Informal Credit Markets and Black Money Do They Frustrate Monetary Policy?
Shankar Acharya Srinivasa Madhur This paper deals with the issue of whether the existence of an informal credit market and 'black liquidity undermines the operation of official monetary and credit policy at the aggregate level To address this issue the authors have formulated a simple model which characterises demand and supply in the formal and informal credit markets as well as the links between them.