Abstract
We present data on debt accumulation in Australia and the United States, and tentative data on Romania, to pose the question of whether Romania might experience a credit crunch as a result of the US subprime financial crisis. We develop a model of a credit crunch in a pure credit economy with endogenous money creation to show how changes in bank lending practices and borrower repayment behaviour can bring about an economic decline.
| Original language | English |
|---|---|
| Pages (from-to) | 16-35 |
| Number of pages | 20 |
| Journal | Romanian Journal of Economic Forecasting |
| Volume | 10 |
| Issue number | 1 |
| Publication status | Published - 2009 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 10 Reduced Inequalities -
SDG 17 Partnerships for the Goals
Keywords
- Australia
- Romania
- United States
- credit
- debt
- financial crises
- monetary policy
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