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Credit, Income, And Inequality - Part III Of III

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from Liberty Street Economics

– this post authored by Manthos Delis, Fulvia Fringuellotti, and Steven Ongena

Access to credit plays a central role in shaping economic opportunities of households and businesses. Access to credit also plays a crucial role in helping an economy successfully exit from the pandemic doldrums. The ability to get a loan may allow individuals to purchase a home, invest in education and training, or start and then expand a business. Hence access to credit has important implications for upward mobility and potentially also for inequality. Adverse selection and moral hazard problems due to asymmetric information between lenders and borrowers affect credit availability.

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Source: http://econintersect.com/pages/contributors/contributor.php?post=202107100522


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