Senior Economics

Posted: January 16th, 2014

1- What is impractical a central bank subsidize a consumer loan such as housing,education….,from where do banks subsidize these loans?(from where do they bring the money )

2- Why economist consider these loans an indirect form of fiscal subsidy? What is the effect of these loans on the real side of the economy?

3- If it is a fiscal subsidy , what is the impact on the fiscal budget . since any subsidy has an impact on fiscal budget?