Demonetisation Disaster to Intensify Further
Channel: NewsClickin
Date: 06/12/2016

Cash stringency will compel firms to reduce labour cost and thus reduces income to the poor working class. There will be a trickle up effect of the liquidity chaos to the higher income people with time. When liquidity shortage strikes, it is consumption that is going to be adversely affected first. Reduced consumption, income and investment may bring down India’s GDP growths as the liquidity impact itself will last three - four months at the least. 
Prof. Surajit Mazumdar and prof. Vikas Rawal talk about the issue more extensively. 

Visit and subscribe to our website at http://newsclick.in for more news and views on current events, science and technology, war, and global inequality.