How an Economy Grows and Why It Crashes


T H E   M A N Y   U S E S   O F   C R E D I T



Download 18,46 Mb.
Pdf ko'rish
bet37/185
Sana23.08.2021
Hajmi18,46 Mb.
#154297
1   ...   33   34   35   36   37   38   39   40   ...   185
Bog'liq
how an economy grows

33
T H E   M A N Y   U S E S   O F   C R E D I T
Emergency Loans
As it turns out, Able’s 
rejection of Baker and 
Charlie’s “vacation” 
(consumption) 
loans was extremely 
fortunate. A week 
later, both are struck by a freak outbreak of the 
Pokalani Pox, which prevents them from fi shing for a week.
Now, when this emergency arises, Able is in a position to make 
a hardship consumer loan out of his accumulated savings 
so that Baker and Charlie can eat and 
live to work another day. Although 
he also understands that the risk 
of nonrepayment is high, he 
understands that the 
risk in not making 
the loan is higher. Unlike 
the consumption loan, Baker and 
Charlie can perish if the emergency loan is not made. If this 
were to happen, the island would lose productive capacity.
Able should deny the loan. Not only would such a transaction 
put his savings at unnecessary risk, but it would mean that 
the capital would be unavailable for more productive loans. 
And while he will earn their scorn, he will actually prevent 
future hardship. In actuality, loans to consumers that do not 
fundamentally improve productive capacity are a burden to 
both the lenders and the borrowers.  



Download 18,46 Mb.

Do'stlaringiz bilan baham:
1   ...   33   34   35   36   37   38   39   40   ...   185




Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©hozir.org 2024
ma'muriyatiga murojaat qiling

kiriting | ro'yxatdan o'tish
    Bosh sahifa
юртда тантана
Боғда битган
Бугун юртда
Эшитганлар жилманглар
Эшитмадим деманглар
битган бодомлар
Yangiariq tumani
qitish marakazi
Raqamli texnologiyalar
ilishida muhokamadan
tasdiqqa tavsiya
tavsiya etilgan
iqtisodiyot kafedrasi
steiermarkischen landesregierung
asarlaringizni yuboring
o'zingizning asarlaringizni
Iltimos faqat
faqat o'zingizning
steierm rkischen
landesregierung fachabteilung
rkischen landesregierung
hamshira loyihasi
loyihasi mavsum
faolyatining oqibatlari
asosiy adabiyotlar
fakulteti ahborot
ahborot havfsizligi
havfsizligi kafedrasi
fanidan bo’yicha
fakulteti iqtisodiyot
boshqaruv fakulteti
chiqarishda boshqaruv
ishlab chiqarishda
iqtisodiyot fakultet
multiservis tarmoqlari
fanidan asosiy
Uzbek fanidan
mavzulari potok
asosidagi multiservis
'aliyyil a'ziym
billahil 'aliyyil
illaa billahil
quvvata illaa
falah' deganida
Kompyuter savodxonligi
bo’yicha mustaqil
'alal falah'
Hayya 'alal
'alas soloh
Hayya 'alas
mavsum boyicha


yuklab olish