Report Detail Summary

Are the Credit Markets Fueling a Low Growth, Low Return Environment?

May 12, 2014

In a free market economy absent any distortions, competition and profit maximization will insure that the amount of credit produced by the economy is the optimal one. We also argue that government actions and other distortions can force the economy to move away from the optimal/efficient solution. The greater the degree of government intervention, the farther away we will be from the optimal amount of credit.

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