how does demonetization impact gdp 
in the short term demonetization usually stunts economic growth and causes gdp to decline during the conversion process many industries and sectors may temporarily come to a halt some industries may not be able to pay laborers as the demonetization process occurs once demonetization is finished it often creates long term economic benefits that increase gdp in the long run demonetization attempts to fight financial crime by making transactions more transparent or discouraging the trade of illegal bills a government is usually able to collect more tax revenue and invest heavier into their country 