Liquidity quantifiably increased in the system

Crunch is a word often associated with credit in the market and whenever the markets are going down and under, the blame is shifted towards a liquidity crunch or a credit crunch in the market that has rendered the business models in operation meaningless, and thus the rides churn themselves into bringing a new model to sustain the changing times of the global geo-economic scenario. The slowdown of the Indian economy has taken many by surprise, including the chief economist at the International monetary fund, Miss Gita Gopinath, who is of Indian origin and is currently employed by the IMF for her services in the economic sector. She is a press conference stated that the consumption fall and rise are cyclical in nature and they shift from time to time depending on the cash flow and the credit availability in the country and at the same point of time drew the attention towards basic structural changes needed by the country to tackle the problems at hand while also indicating that the growth forecast for the country will change at IMF’s counter keeping the suggestions of all the world bodies as well as the Reserve Bank of India in close quarters while doing so. The premise of this interview was also independently stating the factors behind slowdown to which she rightly said that the liquidity has been increased in the system by the initial measures taken by the central bank and the results will be seen in the quarters to come as the problems are more structural than cyclic and this more time will be needed to the stimulus that is given to the industry to be absorbed and then show the results accordingly.