How can the loan decisions of individuals and private bankers contribute to the instability in the macroeconomy

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How can the loan decisions of individuals and private bankers contribute to the instability in the macroeconomy (the business cycle)? Otherwise stated, how can an uncontrolled banking system destabilize the economy?

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Survey of Economics

ISBN: 978-1111989668

8th edition

Authors: Irvin B. Tucker

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Question Posted: Apr 12, 2016 07:10 AM

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How can the loan decisions of individuals and private bankers contribute to the instability in the macroeconomy

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During a recession relatively few individuals are wanting loans an...View the full answer

Survey of Economics

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