Vol. 3, Issue 2, Part A (2017)

Abstract
Business cycle is a part of the capitalist system. Liquidity crunch and bursting of housing and financial bubbles in the advanced countries (particularly USA) led to economic crisis in 2008. A slowdown in the US had influenced almost all economies. This was no longer confined to the western world. India along with others countries also felt the heat. After widespread contraction in economic activity and loss of exports and employment, consumption led Indian economy performed well in this recession. With the announcement of the demonetization and introduction of new notes, now the main concern is that economy may face more serious challenges in coming years than we have seen during the recent global downturn. The present paper has been made to highlight will the worst of recession is coming or cashless economy will achieve the objective of economic growth and financial inclusion.