Archive for January 29th, 2019

Canadian legalisation of cannabis reduces both cash usage and the ‘black’ economy

January 29, 2019

Charles Goodhart and Jonathan Ashworth in this interesting research:

Canada is the first major developed nation to have legalised recreational cannabis use. This column argues that movements in cash in circulation around the time of legalisation seem to provide early evidence that Prime Minister Trudeau’s policy has already been successful in crimping the black economy. If around one-quarter of the cannabis market remains illegal, as recently estimated by Statistics Canada, over time legalisation could reduce the size of the total underground economy by around 4% or 5%.

Posted in Academic research & research papers, Economics - macro, micro etc | Leave a Comment »

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