The conversation between human and AI assistant.
What will be the positive and negative effects of demonization of ₹500/1000 notes on Indian economy?
What about the impact on inflation and prices of goods?
It's possible that removing a significant amount of cash from circulation could lead to lower demand for goods and services, which could in turn lead to lower prices and inflation. On the other hand, if the government is unable to effectively transition to a cashless economy, it's possible that there could be inflationary pressures as people hoard remaining cash and suppliers raise prices to compensate for a drop in demand.