Credit: The Supply and Demand Signs

BRAZIL ECONOMICS - Report 11 Aug 2014 by Affonso Pastore, Cristina Pinotti and Marcelo Gazzano

Credit plays an important role in economic growth. Most companies that have projects to raise productive capacity, contributing to growth, have to find some type of financing. Individuals also benefit from credit by the ability to consume in advance of earning, especially regarding durables. Variations of credit also propagate business cycles by accelerating both expansion and contraction.

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