This document discusses the potential impacts of India's 2016 demonetization on the economy. It notes that demonetization aimed to address counterfeit currency, corruption, and black money. In the short term, it will eliminate counterfeit cash but may only pause corruption temporarily. Most black money is held in assets like gold and real estate rather than cash. Over time, demonetization could boost GDP if more static black money enters the formal economy, as this would increase liquidity and funding for infrastructure projects. However, it could also cause inflation from increased liquidity and taxes on small traders passing on higher prices. There is a risk of short-term recession if demonetization reduces cash flow for small businesses and

2. DEMONETIZATION
DEBUNKED.
WHAT THE MEDIA DID NOT TELL YOU.
HOW WILL IT IMPACT INDIAN ECONOMY?
@RAJESHSOUND

3. A BILLION INDIANS WHO WERE GETTING
READY TO GO TO BED, THAT NIGHT, WERE
STARTLED, BY SHOCK AND AWE.
A NIGHT OF JUBILIATION FOR MANY, DESPAIR
FOR SOME.

4. ON THE NIGHT OF NOVEMBER 9, 2016, 8PM
IST, INDIAN PRIME MINISTER SHRI.
NARENDRA MODI DECLARED THAT ALL ₹500
AND ₹1000 NOTES WOULD NO MORE BE
LEGAL TENDER AT THE STROKE OF
MIDNIGHT.

5. DEMONETIZATION WOULD SOLVE
COUNTERFEIT, CORRUPTION AND BLACK
MONEY IN ONE SALVO.

6. TWITTERATI CALLED IT “A BOLD MOVE”,
“A #SURGICALSTRIKE ON #BLACKMONEY”.

7. THIS SLIDESHARE IS NOT ABOUT THE INTENT,
TEMPORARY HARDSHIPS OR POLITICAL WILL.

8. THIS SLIDESHARE DISCUSSES
IMPACT TO INDIAN ECONOMY

9. SHORT TERM RELIEF
ON COUNTERFIET
+ WILL WEED OUT THE COUNTERFEIT
CURRENCY IMMEDIATELY
+ DO NOT KNOW IF NON-COUNTERFIETABLE

10. A COMMA ON
CORRUPTION
+ THERE MAY BE A PAUSE BECAUSE THE
OLD MONEY CANNOT BE USED.
+WITHOUT OTHER SYSTEMIC CHANGES,
CORRUPT WILL FIND NEWER WAYS

11. SMALL PART OF
BLACK MONEY
MOST STATIC BLACK MONEY IS IN FORM OF
GOLD, REAL ESTATE, FOREIGN ACCOUNTS

12. WHAT ABOUT GDP,
INFLATION, RECESSION.

13. LACK OF CLARITY ON MAGNITUDE,
DEMOGRAPHICS AND ITS CIRCULATION ADDS
TO THE UNCERTAINTY OF RETRIEVING BLACK
MONEY.

14. ACTIVE BLACK MONEY, IS THE MONEY IN
CIRCULATION. IT HELPS IN ECONOMIC
ACTIVITY, PARTLY.

15. STATIC BLACK MONEY IS THE CASH LOCKED
UP AS CASH IN THE LIKES TRUNKS,
MATTRESSES AND LOCKERS. THE STATIC
MONEY SERVE NO SIGNIFICANT PURPOSE TO
BOOST THE ECONOMY EXCEPT FOR THE
POLITICAL PARTIES AND IS USUALLY USED TO
FIGHT ELECTIONS.

16. IMPACT ON GDP

17. MORE ‘STATIC’ BLACK MONEY INTO FORMAL
ECONOMY
THERE IS MORE LIQUIDITY 
INFRASTRUCTURE PROJECTS  HIGHER
PRODUCTIVITY  MORE JOBS AND BETTER
EMPLOYMENT  BETTER GDP GROWTH.

18. PENALTIES AND TAXES  BOOST TREASURY
 BETTER FISCAL CONSOLIDATION 
BETTER CURRENCY STABILIZATION  GDP
GROWTH.

19. INFLATION

20. MORE ‘STATIC’ BLACK MONEY INTO FORMAL
ECONOMY  MORE LIQUIDITY  HIGHER
INFLATION.

21. HIGHER PENALTIES AND TAXES  SMALL
TRADERS PAY MORE TAXES  HIGHER
SELLING PRICE  HIGHER INFLATION.

22. RECESSION

23. LESS ‘ACTIVE’ BLACK MONEY  REDUCED
FLOAT FOR SMALL TRADERS  REDUCED
ECONOMIC ACTIVITY  RECESSION.

24. PENALTIES AND TAXES ON SMALL TRADERS
 MORE LOSS  SMALL TRADERS OUT OF
BUSINESS  RECESSION

25. THE INTERPLAY BETWEEN THE
THREE IN THE NEXT FEW MONTHS
WILL US SHAPE THE FUTURE.
ONLY TIME WILL TELL.

26. DEMONETIZATION
DEBUNKED.
WHAT THE MEDIA DID NOT TELL YOU.
HOW WILL IT IMPACT INDIAN ECONOMY?
@RAJESHSOUND