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Liquidity Harming, Not Helping Manufactures

Liquidity Harming, Not Helping Manufactures
Liquidity Harming, Not Helping Manufactures

Unusually large volumes of liquidity is flowing into non-productive sectors and speculative markets, instead of boosting manufactures, an economist says. 
“Directing liquidity toward manufacturing demands that the yields in speculative markets decline,” ISNA quoted Hossein Abdoh Tabrizi as saying. 
Lower returns in real estate, stock market and the likes can shift the focus of investors towards the myriad of unfished development projects or put money into business that create value, the senior economist said. 
“Despite the ballooning liquidity, assorted businesses face a credit crunch and are in dire need of financial assistance.”  

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