Demonetization

• Demonetization is the act of stripping a currency unit of its status as legal tender.
• It occurs whenever there is change of national currency.
• On 8 November 2016, the Indian Prime Minister Mr.Narendra Modi announced the demonetization of all 500 and Rs.1000 bank notes of the Mahatma Gandhi Series.

History of Demonetization in India:

• 1^st time 1946 – Rs.1000, 10000
• 2^nd time 1978- Rs.1000, 5000,10000
• 3^rd time (8 Nov 2016) – Rs. 500, 1000.

Phillips Curve:

• It is a graphic curve which advocates a relationship between inflation & Unemployment in an economy