Financial Market Turmoil and U.S. Macroeconomic Performance

Elwell, Craig K.

Library of Congress. Congressional Research Service.

关键词: Finance;    Financial crises;    Consumers;    Credit;   

RP-ID  :  R40007
RP-ID  :  R40007_2009Jun09

美国|英语

来源: UNT Digital Library

【 摘 要 】

Lending in credit markets requires confidence in the borrowers' ability to repay the debt (principal and interest) in full and on schedule. The current turmoil in U.S. financial markets is the result of a breakdown in that necessary confidence. A number of indicators have pointed to a substantial rise in the cost of credit and a decrease in the flow of credit to the broader economy. Economic policy may be needed to get credit flowing smoothly again and to mitigate the damage incurred by households and non-financial businesses. Three types of policy response exist and are being applied in varying degrees. This report discusses each of these policy responses.