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We propose and test a new channel through which fiscal policy changes affect the supply of intermediated credit and the …
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banking system is associated with more credit to the public sector, larger fiscal deficits, higher public debt ratios, and the … crowding out of credit to the private sector. These results suggest that the lending practices of state-owned banks should be …
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A large literature has examined the relationship between financial development and economic growth. However; limited work has been done on the macroeconomic determinants of financial development. This paper examines how fiscal policy contributes to financial deepening particularly giving...
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