\van Wijnbergen\, S.J.G. (1983). Credit policy, inflation and growth in a financially repressed economy Journal of Development Economics, 13(1/2):45----.
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Affiliated authorSweder van Wijnbergen
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Publication year1983
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JournalJournal of Development Economics
This paper analyzes credit policy in an open economy macro-model incorporating stylized facts about the financial sector of less developed countries. The Keynes-Wicksell growth model is applied in view of the transmission channel of monetary policy into the supply side of the economy via the cost of working capital. This shows a tendency of a credit crunch to be stagflationary in the short run.