The conversation between human and AI assistant.
How effective is scrapping 500 and 1000 rupee notes? Will it reduce black money?
What about the impact on the Indian economy?
The demonetization disrupted the economy in the short term. Small businesses and low-income individuals who rely on cash transactions for their well-being were hit hard by the sudden withdrawal of cash. However, the long-term impact of this policy on the Indian economy remains a debatable issue. It might have positive outcomes on the economy if black money is reduced, more money is put into the banking system, and the formalization of the economy take place.