ABSTRACT
This conclusion presents some closing thoughts on the key concepts discussed in the preceding chapters of this book. The book contributes to our understanding of intermediated credit and equilibrium credit rationing in the two areas. The first area concerns the sensitivity of the relationship between interest rates and credit supply to the form that equilibrium credit rationing takes when credit is rationed. The second area involves the properties of general equilibrium models in which credit, money, and the incentives to ration co-exist, but which omits the usual Keynesian sources of monetary non-neutrality. The book offers an explanation for "destabilizing" behavior in credit markets. Credit rationing may help explain the difficulties encountered in empirically verifying the conventional view that real interest rates and investment are negatively correlated. The general equilibrium model of money and credit is intended to be a "prototype".
