An empirical analysis of interest rates and exports under imperfect credit markets

2015 ◽  
Vol 22 (13) ◽  
pp. 1078-1082
Author(s):  
Pu Chen ◽  
Nan Xu ◽  
Chunyang Wang
Keyword(s):  
Interest Rates ◽  
Empirical Analysis ◽  
Credit Markets

scholarly journals Economic Growth, Policies and Influencing Factors: The Case of Albania

2016 ◽  
Vol 4 (1) ◽  
pp. 107
Author(s):  
Eleni Vangjeli ◽  
Anila Mancka
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Interest Rates ◽  
Empirical Analysis ◽  
Influencing Factors ◽  
Fiscal Policies ◽  
The Government ◽  
High Level ◽  
The Empirical Analysis

Monetary and fiscal policies are two policies that the government could use to keep a high level of growth, with a low inflancion. Fiscal policy has its initial impact on the stock market, while monetary policy in market assets. But, given that the goods and active markets are closely interrelated, both policies, monetary as well as fiscal have impact on the economy, increasing the level of product through the reduction of interest rates. In our paper we will show how functioning monetary and fiscal policies. But also in our paper we will analyze the different factors which have affected the economic growth of the country. The focus of our study is the graphical and empirical analysis of economic growth, policies and influencing factors. For the empirical analysis we have used data on the economic growth in Albania for 1996– 2014.

Economic coercion and the problem of sanctions-proofing

2018 ◽  
Vol 37 (4) ◽  
pp. 385-408 ◽  
Author(s):  
Menevis Cilizoglu ◽  
Navin A Bapat
Keyword(s):  
Interest Rates ◽  
Credit Markets ◽  
Credit Ratings ◽  
Economic Costs ◽  
High Interest ◽  
International Credit ◽  
Economic Coercion ◽  
Target States ◽  
Borrowing Cost ◽  
Do So

Although sanctions generate economic costs, target states may “sanctions-proof” their regime by borrowing capital from abroad. While some targets obtain interest-free capital from black knight states, others may need to borrow with interest from international credit markets. These interest rates may sometimes make borrowing cost-prohibitive, giving targets no choice but to acquiesce to the demands of the sender. However, since senders cannot observe if black knight states are assisting target states, targets have an incentive to misrepresent their source of external capital. In an effort to deter sanctions, targets that must borrow at high interest rates may signal that they have black knight support and are sanctions-proofed. We formally and empirically demonstrate that in this uncertain environment, senders are more likely to impose sanctions on targets with low credit ratings, but only do so if the target places a relatively low value on uninterrupted economic transactions with the sender.

Strategic behavior of nontraditional lenders in agricultural credit markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Iuliia Tetteh ◽  
Michael Boehlje ◽  
Anil K. Giri ◽  
Sankalp Sharma
Keyword(s):  
Interest Rates ◽  
Strategic Behavior ◽  
Business Models ◽  
Credit Markets ◽  
Primary Data ◽  
Supply Side ◽  
Agricultural Credit ◽  
Content Type ◽  
Study Approach ◽  
Funding Sources

PurposeThis paper examines credit products, operational performance and business models employed by nontraditional lenders (NTLs) in agricultural credit markets.Design/methodology/approachTwo research methods were employed in this study: (1) an executive interview to collect primary data and (2) a case study approach to analyze the findings and develop insights.FindingsThe findings indicate the presence of significant differences among lenders across and within three categories of NTLs (large volume, vendor financing and collateral-based NTLs). For example, collateral-based NTLs employ different strategies focusing on types of loans, funding sources, commodities they support and geographic coverage to further segment the market. NTLs in this study were able to capture market by successfully identifying gaps in the supply side of agricultural credit and developing products that meet the needs of that niche (e.g. heavy renters, large operations, producers seeking fixed interest rates for term loans, financially fragile producers). Most of the interviewed NTLs had credit standards comparable to those of traditional lenders and consider them both competitors and partners since many NTLs partner with traditional lenders on participation loans, loan servicing and/or sourcing funds.Originality/valueThe supply side of a nontraditional lending has not been studied extensively due to the proprietary nature of data. The executive interviews conducted in this study allowed for accumulation of industry data, which is not available otherwise.

Effects of Fiscal Policy on Credit Markets

2020 ◽  
Vol 110 ◽  
pp. 119-124 ◽  
Author(s):  
Alan J. Auerbach ◽  
Yuriy Gorodnichenko ◽  
Daniel Murphy
Keyword(s):  
Financial Markets ◽  
Interest Rates ◽  
Credit Markets ◽  
Local Economy ◽  
Government Contracts ◽  
Fiscal Stimulus ◽  
Access To Credit ◽  
Consumer Loans ◽  
Us Federal Government ◽  
The Cost

Credit markets typically freeze in recessions: access to credit declines, and the cost of credit increases. A conventional policy response is to rely on monetary tools to saturate financial markets with liquidity. Given limited space for monetary policy in the current economic conditions, we study how fiscal stimulus can influence local credit markets. Using rich geographical variation in US federal government contracts, we document that, in a local economy, interest rates on consumer loans decrease in response to an expansionary government spending shock.

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