The Economic Impact of Demonetization

The primary goal of demonetization was to fight black money. The government thought that if they could declare all the legal cash invalid, it would destroy this illicit wealth. But did it kill the black money economy? Not quite. They used the new 500 rupees and 2000 rupee notes for their nefarious schemes. And the worst part, the economy slowed down by at least 2%. There wasn't enough cash to fix a system using well-intentioned scheme.