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Trade Credit and Selective Credit Controls: An Empirical Analysis, 1965-66 through 1985-86

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  • C. Bhujanga Rao

    (Delhi School of Economics)

Abstract

The present study analyses annual outstanding bank credit under selective credit controls with a view to examine the effectiveness of controls on real bank credit. Further, it identifies other important determinants that influence outstanding bank credit. The analyses is in the framework of inventory behavior models covering broadly the period 1965-66 through 1985-86. The results suggest that selective credit controls are effective. Moreover, past credit levels have a strong bearing on their current levels. Stocks held under selective credit controls are in general non speculative in character.

Suggested Citation

  • C. Bhujanga Rao, 1993. "Trade Credit and Selective Credit Controls: An Empirical Analysis, 1965-66 through 1985-86," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 28(2), pages 175-190, July.
    • Handle: RePEc:dse:indecr:v:28:y:1993:i:2:p:175-190
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    More about this item

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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