0 economic conditions that make financial organizations less willing to lend money, often causing serious economic problems
1 economic conditions that make financial organizations less willing to lend money, often causing serious economic problems:
Japan experienced a major credit crunch in the late nineties.
2 the economic situation during 2007-2009, during which there were serious economic problems all over the world relating to financial organizations being unwilling to lend money:
The credit crunch has led to a sharp fall in the number of home loans.
Most politicians agree that the Credit Crunch was originally caused by irresponsible lending by banks.
They are increasingly important, especially in these difficult times of global credit crunch where unemployment is likely to get worse before it gets better.
The problems have possibly been exacerbated, but certainly not caused, by the credit crunch, and state aid should not be a reward for bad behaviour.
I am therefore going to continue unless there is another question relating to the credit crunch/loans for business.
The credit crunch is already affecting small and medium-sized companies and would-be home buyers.
Several authors have examined whether and how recessions cause bank failures and bank panics, and whether and how regulatory responses can cause a credit crunch (see above).
In this article we examine whether this policy-dilemma can be empirically observed, and whether policy-makers concentrate more on preventing bank failures or avoiding a credit crunch.
Political scientists and economists have, however, not yet explored systematically how regulators behave when facing a trade-off between preventing bank failures and preventing a credit crunch.
Consequently, policy-makers face a dilemma between safeguarding the banking system (preventing bank failures and/or bank panics) and preventing a further deterioration in aggregate economic conditions (credit crunch).
