from Wiktionary, Creative Commons Attribution/Share-Alike License
- adj. That may be loaned
from the GNU version of the Collaborative International Dictionary of English
- adj. Such as can be lent; available for lending; ; -- used mostly in financial business and writings.
from The Century Dictionary and Cyclopedia
- Capable of being loaned; specifically, capable of being, or intended to be, loaned out at interest.
Sorry, no etymologies found.
I was simply stating that when lending is tight, and it is pretty tight everywhere and not just at citi, my business, I know this, an increase in loanable funds will not create much increase in investment or consumption.
This would express itself by creating a lower nominal amount of the total loanable funds of investment banks.
The analogy with the credit market is that the government sets the price of loanable funds below what would have occurred on the market by lowering the market rate of interest through the expansion of credit.
Naturally, the nominal rate of interest, i.e., price of loanable funds, will tend to drop.
By increasing the supply of loanable funds, nominal rates tend to fall.
Taxpayers (or the loanable funds market) will find their burden in 2031 to be $280B less than what it otherwise would have been.
Yes, paying back debt leads to more spending capacity in society, but lenders are not people, in general, but banks, so what it really does is increase the amount of loanable funds.
Even in this situation I might argue that it is not a bad thing as emerging from the recession with an excess of loanable funds would be helpful in stimulating future investment and would lead to a stronger future recovery, but it is not something that stimulates consumption in the short term.
As with loans of actual books, you can't read the book while it's on loan, and not every title in the B&N catalog is loanable (publishers and authors can veto the feature).
Money flows and usury ceilings: How loanable funds left Arkansas in 1974: preliminary draft for submission to the Credit Research Center, Purdue University by Gene C Lynch
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