Credit Expansion During Two Booms
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| Author(s): | Andersen, Jens Verner; Lyngesen, Hanne; Pedersen, Erik Haller |
| Subject: | Danish economy; Monetary conditions; Economic activity and employment; Financial assets and balances |
| Type: | Monetary Review, 2. Quarter 1999, page 43-58 |
| Year of publication: | 1999 |
| Date of publication: | 06/30/1999 |
Households begin to borrow early in an upswing, while business enterprises do not start until their earnings can no longer finance the rising investments. In general, the banks are the marginal lenders. It will hardly be possible to maintain the present very low losses when the upswing fades away.
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