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Careful with long-term financial cycles

A long-term financial cycle has coincided with, and bolstered, the current investment cycle. That s good and bad news for India s growing economy. The outcome is a higher investment-to-GDP ratio. But there is need for caution. If the financial cycle runs ahead of the business cycle unchecked, eventual stresses could be severe, worsening the inevitable downturn. ....

Financial Cycle , Construction Sector , Investment Cycle , Economic Stability , Real Estate , Bank Credit , Housing Demand , Lanz Research ,