On government credit programs
Marco Espinosa-Vega (),
Bruce Smith and
No 98-2, FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta
Credit rationing is a common feature of most developing economies. In response to it, the governments of these countries often operate extensive credit programs and lend, either directly or indirectly, to the private sector. We analyze the macroeconomic consequences of a typical government credit program in a small open economy. We show that such programs increase long-run production if the economy is in a development trap and that such programs often lead to endogenously arising aggregate volatility. On the other hand, they may eliminate certain indeterminacies created by endogenous credit market frictions.
Keywords: Banks and banking, Central; Credit; Productivity (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.frbatlanta.org//filelegacydocs/wp9802.pdf [301 Moved Permanently]--> https://www.frbatlanta.org/filelegacydocs/wp9802.pdf)
Working Paper: On Government Credit Programs (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedawp:98-2
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta Contact information at EDIRC.
Bibliographic data for series maintained by Elaine Clokey ().