| Author: | Shanin, W. N. |
| Title: | Money Supply Implications of Financing Deficit Through Captive Buyers in a Dual Loan System |
| Journal: | Quarterly Review of Economics and Business
1989 : SUMMER, VOL. 29:2, P.87-95 |
| Index terms: | MARKETS MONEY MARKETS |
| Language: | eng |
| Abstract: | This paper analyzes the effect of money supply of financing budget deficits through captive buyers of government securities in a system that includes organized and nonorganized loan markets. Earlier results appearing in the literature are based on studies omitting unorganized loan market. In contrast, the present article uses a portfolio- balance model including the two loan markets to demonstrate the modifications of the conventional results if the model includes the dual loan market feature characterizing most less-developed countries. |
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