Credit policy, inflation and growth in a financially repressed economy
| Authors |
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| Publication date |
1983
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| Journal |
Journal of Development Economics
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| Volume | Issue number |
13 | 1/2
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| Pages (from-to) |
45--
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| Number of pages |
21
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| Organisations |
-
Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
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Faculty of Economics and Business (FEB)
|
| Abstract |
This paper analyzes credit policy in an open economy macro-model incorporating stylized facts about the financial sector of less developed countries. The Keynes-Wicksell growth model is applied in view of the transmission channel of monetary policy into the supply side of the economy via the cost of working capital. This shows a tendency of a credit crunch to be stagflationary in the short run.
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| Document type |
Article
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| Published at |
https://doi.org/10.1016/0304-3878(83)90049-4
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