Abstract
This research analyzes alternate explanations for credit rationing suggested by New Keynesian Economics and provides a classification of different theoretical contributions: a) financing and evaluating investment projects; b) relationship between lenders and borrowers; c) macroeconomics and structure of the financial system. What these models have in common under this theoretical approach is the adoption of orthodox methodology in how they interpret imbalances in the credit market. They provide different hypothesis for the origin of the imbalance, such as market failures, rigid prices and imperfect information. The main critique to this approach is not the multitude of hypotheses offered, but rather the absence of an explanation concerning the link between the credit market, monetary policy and the real sector.
| Translated title of the contribution | Credit rationing: A perspective from new Keynesian Economics |
|---|---|
| Original language | English |
| Pages (from-to) | 31-54 |
| Number of pages | 24 |
| Journal | Problemas del Desarrollo |
| Volume | 43 |
| Issue number | 171 |
| State | Published - 2012 |
| Externally published | Yes |
Keywords
- Credit rationing
- Imperfect information
- New Keynesian economics
- Price rigidity