Roosa effect (locking-in-effect effect) - Negative impact on the supply of credit, which is caused by restrictive monetary policy. The rise in the market interest rate triggered by tightening of monetary conditions causes a fall in the prices of securities held by banks. Less attractive is the sale of these securities in order to obtain funds for lending activities, which in turn will be more profitable due to higher interest rates. In this situation, the sale of securities would lead to capital losses, so their supply is limited. Bibliography

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