Any economic policy involves periodic monitoring of money supply, government budgets and spending, inflation adjusted interest rates, revision of fiscal policy at regular intervals. There are certain extreme situations where a government seeks to intervene and regulate them. One such important intervention is Demonetization. Indian economy has undergone a major transformation with its recent major initiative of Demonetization. Such a surprise initiative has created a scope for some multidimensional effects. This paper seeks to analyze some of the important economic effects such as inflation, GDP, interest rates. It progresses through collecting historical data related to the various selected parameters and analyzing their trends during the past one year. Conclusively, it attempts to show the impact of recent Demonetization in selected economic parameters.