What will be the impact of unlimited money supply?

What impact will demonetizing pre 2005 notes have on the economy, money markets, and the Indian public, in general?

  • Demonetizing notes will tend to scare people with small life savings and no bank accounts. On the other hand, people having black money may now convert it into new currency notes. I feel demonetizing pre-2005 notes will impact poor more,with very little action on black money What is your take on this!

  • Answer:

    It would have impact on the domestic black money which is more or less equivalent 50% of black money generated within the country. But the problem here is most of the black money within the country would be of recent times as corruption grew rampant post 2004 so this would have negligible to no effect as the notes held are most likely of post 2005. Considering the lust for gold within the country most of the black money would have been converted into yellow metals. Layman has negligible to no effect because of this as he is either hand to mouth or trapped in middle class life with decent savings. While the greater chunk would have been transformed into dollars in swiss bank. The impact of demonetizing pre 2005 notes would not have much effect on economy market and Indian public while the fakes would be controlled with advanced security introduced in post 2005 notes.

Shree Ram at Quora Visit the source

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