The conversation between human and AI assistant.
What are the expected consequences of Declaring 500 and 1000 rupee notes as illegal?
I see. But do you think this move will have any impact on inflation or economic growth?
It's too early to say for sure, but some economists believe that the demonetization may lead to short-term deflationary pressures as people hold onto their cash, and also have a negative impact on economic growth in the short term. However, in the long run, it may lead to a more formalized, digitized and inclusive economy, which can have positive effects on inflation and economic growth.