Terms of credit in a competitive market: Philly Fed research
The market contract between lenders and borrowers varies over time and in accordance with the two parties' long-term credit relationship, research published on Wednesday by the Philadelphia Federal Reserve finds.
Daniel Sanches, the paper's author, ascribes the following characteristics to contracts offered by lenders in a competitive market:
- lenders can commit to some credit contracts, while borrowers cannot commit to any contract;
- the history of trades within each enduring credit
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