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Home > Business and Economics > Economics > Macroeconomics > Financial Liberalization and Intervention: A New Analysis of Credit Rationing(New Directions in Modern Economics series)
Financial Liberalization and Intervention: A New Analysis of Credit Rationing(New Directions in Modern Economics series)

Financial Liberalization and Intervention: A New Analysis of Credit Rationing(New Directions in Modern Economics series)


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About the Book

This text seeks to provide a coherent explanation as to why the policies of financial liberalization and financial intervention have been unable to achieve the goal of improving the access of borrowers to the loan market, irrespective of size. This is one of the prime criteria for achieving efficiency in the operation of the loan market and its failure has resulted in increased uncertainty and financial fragility. Basu develops a theory of credit rationing which provides a theoretical explanation as to why neither policy has worked. He introduces two concepts, namely credit standard and credit risk, in order to explain why bankers ration credit to some, while quite willingly offer loans to others. He then uses these two concepts to show why the implementation of either policy involves forcing or inducing the banking sector to relax its credit standard requirements. This in turn increases credit risk to an unprecedented level, thereby engendering either financial crisis or financial fragility. The author employs empirical evidence from both India and South Korea to demonstrate how these scenarios can unfold.

Table of Contents:
Contents: Preface 1. General Introduction 2. A Critical Review of the Literature on Credit Rationing 3. The Theory of Credit Rationing Revisited 4. Financial Liberalization 5. Intervention I: The South Korean Experience 6. Intervention II: The Indian Experience 7. Concluding Remarks References Index

About the Author :
Santonu Basu, School of Business and Management, Queen Mary, University of London, UK

Review :
'This delightful little book is highly recommended reading, since it presents a unique perspective and offers the reader up-to-date and in-depth insights into key issues of credit market uncertainty.' 'This is a very interesting and informative book, and highly relevant for both developed and developing countries. The author synthesises a large amount of literature and makes an original contribution to the theory of credit rationing. This book is well argued, clearly written and deserves a close read.'


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Product Details
  • ISBN-13: 9781840649659
  • Publisher: Edward Elgar Publishing Ltd
  • Publisher Imprint: Edward Elgar Publishing Ltd
  • Height: 234 mm
  • No of Pages: 168
  • Sub Title: A New Analysis of Credit Rationing
  • ISBN-10: 1840649658
  • Publisher Date: 29 Jul 2002
  • Binding: Hardback
  • Language: English
  • Series Title: New Directions in Modern Economics series
  • Width: 156 mm


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Financial Liberalization and Intervention: A New Analysis of Credit Rationing(New Directions in Modern Economics series)
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Financial Liberalization and Intervention: A New Analysis of Credit Rationing(New Directions in Modern Economics series)
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