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67
According to the Debt Deflation Interpretation, why did credit markets slow or crash (2 reasons)?
1) Stock market was declining, so collateral was limited
2) banks severed long term relations and raised interest rates, limiting access to credit for households (making it difficult to spend)
2) banks severed long term relations and raised interest rates, limiting access to credit for households (making it difficult to spend)
Flashcard info:
Author: savhighsmith
Main topic: Economics
Topic: History of Economics
School / Univ.: UGA
City: Athens
Published: 11.12.2010