S-Space College of Social Sciences (사회과학대학) Institute of Economics Research (경제연구소) Seoul Journal of Economics Seoul Journal of Economics vol.02(1) (Spring 1989)
Aggregate Output and Price Adjustment with Credit Rationing and Informal Loan Markets
- Agenor, Pierre-Richard
- Issue Date
- Seoul Journal of Economics, Vol.2 No.1, pp. 53-68
- A macroeconomic model of output and price adjustment for a semi-industrialized developing country with informal loan markets is presented and tested. The model is based on the microfoundations of firm behaviour under monopolistic competition and bank credit rationing. Empirical results for three Latin American countries (Brazil, Colombia, and Peru) provide no support to the "cost push" effect of restrictive monetary policy, as recently emphasized in the literature.