Credit Risks

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Credit Rationing - Reducing Administrative Risks of Increasing the Fundamental Source of Money - Increasing Bank Loans and Other Financial Institutions. Credit rationing makes sense when inflation is relatively high and businesses do not refuse to pay higher interest on the loan taken. This is because companies can shift their financial costs to the price of their products.

The advantages of rationing loans

The main advantage of credit rationing is that it allows you to effectively control the primary source of money creation.

Disadvantages of loan rationing Bibliography

Economic Policy, Boleslaw Winiarski, Scientific Publishing House, Warsaw 2000

wiki

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